Daily FX Trading Update: Yellen’s Speech Coming Up – Feb 10, 2016

Daily FX Trading Update: Yellen's Speech Coming Up - Feb 10, 2016
The US dollar was in a weaker spot yesterday even as it put up a fight against the comdolls. Data from the US economy came in mixed, with JOLTS job openings showing a gain and the NFIP small business index declining. Fed head Yellen’s speech might be a strong catalyst for directional plays today as traders are waiting to hear more clues on whether a March hike is possible or not.
The euro chalked up strong gains against its peers and even rebounded against the Japanese yen. Data from the euro zone was actually weaker than expected as the German industrial production report indicated a 1.2% decline instead of the projected 0.2% uptick. French and Italian industrial production numbers are due today.
The pound managed to hold steady against the dollar and yen while racking up some gains against the comdolls. Today has the manufacturing and industrial production reports on tap and weak readings might be in the cards given how the previous reports turned out. UK manufacturing production is expected to have stayed flat in December.
The franc carried on with its advance against the dollar and euro, as the Swiss jobless rate held steady at 3.4% instead of rising to the estimated 3.5% figure. There are no reports up for release from the Swiss economy today.
The Japanese yen lost a bit of ground when risk appetite improved early yesterday but managed to get back on its feet later on. Data from Japan has been weaker than expected, with producer prices down 3.1% versus the projected 2.8% fall.
Commodity Currencies (AUD, NZD, CAD)
The Loonie ignored another buildup in oil stockpiles as it tried to hold on to its current levels. US crude oil inventories data is due today and an increase of 3.1 million barrels is eyed, likely to weigh on prices again. In Australia, the Westpac consumer sentiment report showed a 4.2% gain while HIA new home sales jumped 6.0%.

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

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.