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Yellen sends the USD higher – rate hike coming in

In a short 4.5-page testimony, Fed Chair Janet Yellen  makes hawkish sounds, saying that the committee will evaluate the situation and perhaps raise rates in one of its  upcoming meetings. Three rates hikes are possible with and in line with Fed forecasts. .

Yellen sees the jobs market with rosy glasses: wages are rising in jobs growth is widespread. She says that waiting too long to tighten would not be wise. However, the caveat is the normal warning that rates are not a preset course.

She  says it is not her place to advise on fiscal policies but mentions that these should promote long-term growth and  maintain a sustainable budget

The US dollar is higher across the board.

  • EUR/USD traded at 1.0610 despite disappointing German growth. The pair fell to 1.0580.
  • GBP/USD was around 1.2470, hit hard by weak UK inflation data. Cable experiences a small slide to 1.2460.
  • USD/JPY traded slightly lower at 113.55. Dollar/yen leaps above 114.
  • USD/CAD traded around 1.3040 amid rising oil prices following the OPEC Accord. Dollar/CAD is at 1.3080.
  • AUD/USD enjoyed a mix of positive news and reached 0.7680. The pair slips to 0.7655.
  • NZD/USD was stable around 0.7180 and 0.7155 afterward.

Fed Chair Janet Yellen is making her first testimony in front of the new Congress, under the Trump administration. This is the main event of the week. The prepared statement is released immediately with all the headlines flashing. She then reads it out and follows with answering questions, where more market moving  remarks can emerge.

The US dollar has been mixed ahead of the event.

More:  Yellen: fine balancing between confidence, dovishness, and politics [Video]

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.