18 Nov 2013
Dollar remains under moderate pressure in continuation of last week's momentum
FXstreet.com (London) - The dollar remains under moderate pressure as momentum from Janet Yellen’s confirmation hearing before the US Senate continues into this week.
In her appearance before the senate committee on banking, housing and urban affairs, Yellen read from a pre-released speech before facing questions from the committee ahead of her appointment as the successor to Fed chairman Ben Bernanke.
Yellen’s dovish statement and answers to questions from the committee on the role of the Fed reassured markets that the central bank would continue to take an ultra-dovish approach to the US economy. Yellen stressed that in her view the Fed still had work to do in supporting the US economic recovery.
The cautious approach to any question of the Fed tapering its USD85bn-a-month asset purchase programme helped support risk, driving up equity markets while putting the dollar under pressure.
With Philadelphia Fed chairman Charles Plosser and Chicago Fed chairman William Dudley both scheduled to speak this afternoon, there is little to disrupt the bullish EUR/USD trend until tomorrow’s German ZEW Institute numbers.
EUR/USD is currently trading at USD1.3510, up 0.11 percent.
In her appearance before the senate committee on banking, housing and urban affairs, Yellen read from a pre-released speech before facing questions from the committee ahead of her appointment as the successor to Fed chairman Ben Bernanke.
Yellen’s dovish statement and answers to questions from the committee on the role of the Fed reassured markets that the central bank would continue to take an ultra-dovish approach to the US economy. Yellen stressed that in her view the Fed still had work to do in supporting the US economic recovery.
The cautious approach to any question of the Fed tapering its USD85bn-a-month asset purchase programme helped support risk, driving up equity markets while putting the dollar under pressure.
With Philadelphia Fed chairman Charles Plosser and Chicago Fed chairman William Dudley both scheduled to speak this afternoon, there is little to disrupt the bullish EUR/USD trend until tomorrow’s German ZEW Institute numbers.
EUR/USD is currently trading at USD1.3510, up 0.11 percent.