Hawkish or Dovish, well today we have retrospective examples of its effect on the sentiment for a currency. In one case Yellen’s indication that national debt should be capped and that monetary policy should be gradual, caused the USD to slip further (for the fourth consecutive day) keeping the dollar solidly in a 10 month rut.
On the other side of the interest rate coin (for lack of a better term) Canada’s central bank decided to commit to their first interest rate hike in seven years. This of course resulted in a boost in currency pairs with CAD as the base – on Wednesday the currency gained a respectable 1.3%.
Janet Yellen testimony in front of Congress will continue today and the Consumer Price Index for the US will be released on Friday, so the dollar should be in the forefront of investors’ interest until the end of the week. US stocks will also be a point of interest due to the slight increase they experienced after the speculation of a gradual interest increase.
More significant US relevant news should be Big Banks’ Well Fargo & Co. (expected Friday 7.17.17) Citigroup Inc. (expected Friday 7.17.17) and JPMorgan Chase & Co. (expected Friday 7.17.17) В reports slated to be released this week all before market opening (according to Nasdaq.com).