15 Jul 2014
USD rallies after Yellen comments
FXStreet (Córdoba) - Fed Chair Yellen's testimony before the US Senate Banking Committee inspired trading activity across financial markets, with the dollar and US yields soaring and stocks and commodities slumping.
The US dollar strengthened sharply and rallied across the board after Yellen testimony before the Senate Banking Committee. Fed Chair Yellen said projections from FOMC members are indicative of the outlook for rates, while noting most officials expect rates to start rising in 2015 and to finish the year around 1%.
However, she stresses that even though the Fed would like to provide strong guidance about the timing of interest rate hikes, it is not possible given the uncertainty outlook.
Overall, investors have interpreted mixed signals as dollar positive, sending the EUR/USD slumping to a 1-month low of 1.3561. The USD/JPY climbed to a high of 101.74. Even the GBP/USD that was among the best performers, turned lower and trimmed gains after hitting a fresh 6-year peak of 1.7190 minutes before. The USD/CHF rallied to a 3-week high of 0.8962.
As for commodity currencies, the USD/CAD reached a 4-week high 1.0762 and the AUD/USD tumbled to 0.9348, its lowest in 8 days.
The US dollar strengthened sharply and rallied across the board after Yellen testimony before the Senate Banking Committee. Fed Chair Yellen said projections from FOMC members are indicative of the outlook for rates, while noting most officials expect rates to start rising in 2015 and to finish the year around 1%.
However, she stresses that even though the Fed would like to provide strong guidance about the timing of interest rate hikes, it is not possible given the uncertainty outlook.
Overall, investors have interpreted mixed signals as dollar positive, sending the EUR/USD slumping to a 1-month low of 1.3561. The USD/JPY climbed to a high of 101.74. Even the GBP/USD that was among the best performers, turned lower and trimmed gains after hitting a fresh 6-year peak of 1.7190 minutes before. The USD/CHF rallied to a 3-week high of 0.8962.
As for commodity currencies, the USD/CAD reached a 4-week high 1.0762 and the AUD/USD tumbled to 0.9348, its lowest in 8 days.