Yellen revives hopes for a March rate hike

15 February, 2017

The US dollar rallied to a fresh 1-month high yesterday, spurred by hawkish comments from Fed Chair, Janet Yellen who reiterated the Fed's rate hike plans. By potentially keeping the options open, Ms. Yellen rekindled hopes for a March rate hike sending the greenback and US equities higher on the day. On the economic front, data was supportive of the rally as the U.S producer prices index rose 0.6% and 0.4% on the headline and the core respectively, beating the median estimates and pushing the headline PPI 1.7% on an annual basis.

In the UK the rise in inflation was not as high as forecast briefly sending the British pound weaker while in the Eurozone, German inflation edged closer to the ECB's 2% inflation target rate. But this did little to shore up the single currency which closed the day 0.19% weaker against the US dollar.

Looking ahead, the UK's monthly jobs report due later today is expected to show wages rising at a steady pace of 2.8% while the UK's unemployment rate is expected to remain unchanged at 4.8%. The US monthly inflation report is also due and expected to show headline prices rise 0.3% on a month over basis, while core CPI is expected to rise 0.2%. Retail sales figures will also be released simultaneously. The Fed Chair will resume her second day of testimony to the US Congress today.

EURUSD intra-day analysis

EURUSD (1.0578): EURUSD posted a fresh 1-month low yesterday breaking down below the round number support of 1.0600. The declines came as the Fed Chair Janet Yellen signaled the Fed's intent to pursue policy tightening. Following the break down below 1.0600 support, EURUSD is likely to drift towards 1.0555 where the next support is seen, albeit some pull back ahead of this decline will see prices retesting 1.0600 support to establish resistance. The single currency failed to post any gains despite data from Germany showing that Europe's largest economy was powering ahead at full steam after registering at 1.9% annual GDP growth rate in 2016.

GBPUSD intra-day analysis

GBPUSD (1.2463): GBPUSD formed a bearish engulfing pattern yesterday as data from the Office for National Statistics showed that consumer increased less than expected at a pace of 1.8%. Economists expected to see CPI rise 1.9% instead. The British pound came under pressure with a stronger US dollar, closing the day at $1.2468. Price action continues to trade rather flat with $1.2400 support remaining in sight. The monthly jobs report from the UK will be the main event risk for today with traders likely to focus on the wage growth which is expected to show a headline print of 2.8%.

USDJPY intra-day analysis

USDJPY (114.38): USDJPY is pushing ahead after what looks to be a break above 114.00 resistance level yesterday. Further upside will see the dollar targeting the unfilled gap from 27 January at 115.10. However, the daily Stochastics is showing a hidden bearish divergence, and this makes it essential for USDJPY to post a daily close above 114.00 to ascertain further gains. Failure to do so could signal near term weakness in USDJPY which could push prices back towards 113.00 - 112.50 support level which is pending a retest.

Source link  
Japan's Q2 GDP rebounds by 3.0%

The latest revised GDP numbers from Japan showed that the economy advanced faster than previously expected. The data on the final reading...

Dollar continues to slide

The greenback continued to weaken against some of the major currencies yesterday amid a quiet trading day...

Dollar looks to a new week

The US dollar index will be looking to a fresh week with the possibility of a rebound following last week's sharp declines..

US dollar rebounds as investor nerves cool

The US dollar managed to stem the strong declines after developments from Washington...

EURUSD unstoppable at a 6-month high

The euro surged ahead to a fresh 6-month high earlier this morning as the price was seen tradingþ...

Will UK's wages catch up?

The US dollar extended declines strongly for another day as economic data...

US dollar stays subdued

The latest monthly manufacturing activity report released by the New York Fed yesterday...

US dollar slips on soft inflation figure

The US dollar fell sharply on Friday after data showed that consumer price index rose 0.2%...

US dollar looking weaker

Economic data from the US continued to remain robust with the initial jobless claims declining to 236,000 for the week...

In the past 24 hours Bitcoin has lost -0.77% and reached $6531.41436196. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.6352% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -7.1% and is now at $206.082711192. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
6FIBO GroupFIBO Group84%