Daily FX Trading Update: USD Slides Lower on Yellen’s Speech

The US dollar was still mostly weaker in recent sessions, as Fed Chairperson Yellen expressed her disappointment over the latest jobs figures. She gave a pretty balanced testimony, citing that rates will have to be hiked at some point but that tightening too soon could expose the economy to larger risks. Only medium-tier reports are due from the US today so risk sentiment might play a larger role in price action.
The euro advanced against most of its rivals despite mixed euro zone data. The region’s retail PMI climbed from 47.9 to 50.6 to show a return to industry expansion but the German factory orders report printed a worse than expected 2.0% slide versus the estimated 0.4% dip. German industrial production and French trade balance numbers are due today.
The pound managed to recover from its previous slide as a few polls still indicated a lead in favor of staying in the EU. There were no reports out of the UK economy yesterday while today has the Halifax HPI due, although Brexit updates might still steal the show.
The franc advanced against the dollar but returned some of its gains against its other counterparts as risk appetite improved. There were no reports out of the Swiss economy yesterday while today has the SNB foreign currency reserves data, which might indicate if the central bank is interfering in the forex market.
The yen returned some of its recent wins as risk appetite returned to the markets. There were no reports out of the Japanese economy yesterday and none are due today. The country’s current account balance, final GDP reading, and Economy Watchers Sentiment index are up for release in the next Asian session.
Commodity Currencies (AUD, NZD, CAD)
The comdolls regained ground thanks to the pickup in risk appetite and the rally in commodity prices. For today, the RBA statement is due and a balanced statement is eyed. Canada’s Ivey PMI is also up for release and a climb from 53.1 to 54.2 is expected.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

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