Fed Chair Yellen yesterday unwound most of the dollar rally seen since mid-March, with her surprisingly dovish speech placing a greater note of caution on the outlook for interest rates in the US. This pushed the US 2 year yield back down to levels prevailing at the beginning of the month and the broader dollar index is now down more than 3% on the month and just over 5% for the year. Recall that this was the year that the Fed was expected to continue its tightening path, started in December, giving further support to the dollar. Once again, the roadmap for the year has had to be ripped up and the dollar bulls have had to re-think their strategy. It’s against the yen that the dollar has lost most ground on the majors, but has slipped even more against the Brazilian real, which finds itself nearly 9% higher on the quarter. The more recent gains have come on the back of expectations that President Rousseff will lose power in the coming months and a change of leadership will allow some progress to be made on financial reform. For today, we enter the penultimate day of the month and quarter, which could lead to some choppy trading as investors wait for the US Employment report on Friday. Ahead of that, we have the ADP numbers at 12:15 GMT today, which will give some steer ahead of Friday’s release. Note that Yellen was also playing down the inflationary significance of the falling unemployment rate yesterday, so even this bright spot is not seen pushing the need for higher rates in the US. We also have business and consumer confidence data in the Eurozone at 09:00 GMT. The euro continues to hold up relatively well against the backdrop of negative rates in the Eurozone, but resistance remains strong around the 1.1342/76 area on EURUSD. Further reading: Yellen downs the dollar – Live Market Open from 7:00 GMT Yellen: caution is “especially” warranted: USD crashes FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next Elliott Wave March 30 2016 EURUSD and AUDUSD Gregor Horvat 6 years Fed Chair Yellen yesterday unwound most of the dollar rally seen since mid-March, with her surprisingly dovish speech placing a greater note of caution on the outlook for interest rates in the US. This pushed the US 2 year yield back down to levels prevailing at the beginning of the month and the broader dollar index is now down more than 3% on the month and just over 5% for the year. Recall that this was the year that the Fed was expected to continue its tightening path, started in December, giving further support to the dollar. Once again, the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.