7 May 2014
Session Recap: USD posts modest gains on Yellen’s day
FXStreet (Córdoba) - The USD recoup some of Tuesday’s losses and rose moderately across the board on the day that Janet Yellen answered questions. Volatility remained low despite Yellen’s words, that did not surprised traders.
The EUR/USD moved in a range of 40 pips and pulled back but held above 1.3900 ahead of the ECB meeting. Same story with the GBP/USD that moved away from 1.70 and finished hovering around 1.6950 the day before BoE meeting that is likely to have no impact. The Swiss Franc was the worst performer among European currencies.
The Yen rose at the beginning of the American session but then lost momentum and erased all gains. The USD/JPY ended around daily highs, barely below 102.00 as stocks in the US recover after a negative opening. The Dow Jones finished up 0.72% at the strongest level of the day.
Among commodity currencies, the Canadian dollar was the best performer. The loonie finished unchanged versus the US dollar while the Kiwi and the Aussie declined. The AUD/USD moved all day with a downside bias and found support at 0.9315 ahead of the release of the Australian employment report.
Tensiones in Ukraine eased pushed gold further to the downside. The ounce fell from $1,313 to $1,289, having the worst day since April 15. Crude oil rose more than 1% and finished above $100.50 as inventories fell.
FED Chair Janet Yellen said in front of the Joint Economic Committee of Congress that the economy still needs a high degree of accommodation and pointed out that the labor market is still weak. Economic data on Wednesday included US consumer credit that rose in March $17.5 billion above the $15.5 billion expected; it was the highest increase since February 2013.
Main headlines in the American session
Wall Street closes at highs after recovering morning losses
EUR/GBP awaits BoE and ECB
ECB alert, test of 1.40 likely – RBS
GBP/USD sliding away from 1.70 handle
AUD/USD sidelined below key 0.94 level
Gold tumbles below $1,300
Fed's Yellen: Slack in labor market remains considerable
Fed's Yellen: QE taper to continue in 'measured steps', no specific timeline for rate hike
The EUR/USD moved in a range of 40 pips and pulled back but held above 1.3900 ahead of the ECB meeting. Same story with the GBP/USD that moved away from 1.70 and finished hovering around 1.6950 the day before BoE meeting that is likely to have no impact. The Swiss Franc was the worst performer among European currencies.
The Yen rose at the beginning of the American session but then lost momentum and erased all gains. The USD/JPY ended around daily highs, barely below 102.00 as stocks in the US recover after a negative opening. The Dow Jones finished up 0.72% at the strongest level of the day.
Among commodity currencies, the Canadian dollar was the best performer. The loonie finished unchanged versus the US dollar while the Kiwi and the Aussie declined. The AUD/USD moved all day with a downside bias and found support at 0.9315 ahead of the release of the Australian employment report.
Tensiones in Ukraine eased pushed gold further to the downside. The ounce fell from $1,313 to $1,289, having the worst day since April 15. Crude oil rose more than 1% and finished above $100.50 as inventories fell.
FED Chair Janet Yellen said in front of the Joint Economic Committee of Congress that the economy still needs a high degree of accommodation and pointed out that the labor market is still weak. Economic data on Wednesday included US consumer credit that rose in March $17.5 billion above the $15.5 billion expected; it was the highest increase since February 2013.
Main headlines in the American session
Wall Street closes at highs after recovering morning losses
EUR/GBP awaits BoE and ECB
ECB alert, test of 1.40 likely – RBS
GBP/USD sliding away from 1.70 handle
AUD/USD sidelined below key 0.94 level
Gold tumbles below $1,300
Fed's Yellen: Slack in labor market remains considerable
Fed's Yellen: QE taper to continue in 'measured steps', no specific timeline for rate hike