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US Dollar better bid on Yellen, Fed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The greenback – gauged by the US Dollar Index - saw its upside renewed today following Yellen’s statement, advancing to daily highs in the 96.30/40 band.

    US Dollar stronger on Yellen’s testimony

    USD has managed well to defend the key support at the 96.00 handle for the time being, in a context where the risk aversion has been dominating the global markets.

    The greenback found extra support today following the Fed’s Semi-annual Monetary Policy Report and Yellen’s testimony. In its report, the Fed argued that looser monetary conditions implemented by the ECB and BoJ ‘partially offset’ the effects of the recent rate hike in the US.

    Chairwoman J.Yellen said the Committee now expects economic conditions to warrant gradual increases in the Fed-Funds rate. In addition she expects consumer prices to gradually rise towards the 2% target backed by strengthening conditions in the labour market.

    US Dollar levels to watch

    The index is up 0.48% at 96.50 facing the next hurdle at 96.94 (200-day sma) ahead of 97.50 (high Feb.8) and then 97.87 (100-day sma). On the other hand, a breach of 95.43 (76.4% Fibo of 93.86-100.60) would target 94.19 (low Sep.18 2015) en route to 93.86 (low Oct.14).
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