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12 Feb 2014
Flash: USD supported on Fed Business As Usual - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ notes that USD is supported as Yellen signals business as usual at the Fed.
Key Quotes
"The US dollar has remained broadly stable during the Asian trading session as market participants digest the semi-annual testimony from Chairwoman Yellen to the House Financial Services Committee. A key comment from Yellen in her testimony was that she “strongly supported” the current FOMC policy stance."
"This was a clear message to Congress not to worry about the concern of a Yellen-FOMC abandoning price stability in favour of being more aggressive in achieving better labour market conditions. That plus the confirmation that tapering would continue going forward left little doubt that the change at the top of the FOMC would not mean a change in policy."
"Given that the recent series of weak data meant the only plausible shift would have been toward pausing tapering, the testimony helped keep the dollar stable. It also helped support risk appetite with the 1.1% rise in US equity markets lifting equity markets in Asia today."
Key Quotes
"The US dollar has remained broadly stable during the Asian trading session as market participants digest the semi-annual testimony from Chairwoman Yellen to the House Financial Services Committee. A key comment from Yellen in her testimony was that she “strongly supported” the current FOMC policy stance."
"This was a clear message to Congress not to worry about the concern of a Yellen-FOMC abandoning price stability in favour of being more aggressive in achieving better labour market conditions. That plus the confirmation that tapering would continue going forward left little doubt that the change at the top of the FOMC would not mean a change in policy."
"Given that the recent series of weak data meant the only plausible shift would have been toward pausing tapering, the testimony helped keep the dollar stable. It also helped support risk appetite with the 1.1% rise in US equity markets lifting equity markets in Asia today."