020 7898 0500The US dollar (USD) was relatively unmoved on Wednesday. Earlier in the day, the it reached a one-month high versus a basket of currencies as US data showed growth in retail sales and consumer prices in January. But traders were quick to take profit, thus reversing the move.
The dollar’s retreat could also be attributed to US Federal Reserve Chair Janet Yellen, who in her second day of economic testimony before Congress offered no additional insight around the timing of the central bank’s next rate hike. Ms Yellen had hinted on Tuesday that interest rate hikes were on the way, which propped up the dollar and sent it below 1.25 against the pound (GBP), further aided by a buoyant US jobs market and inflation closing in on the Federal Reserve’s 2 % target.
Today sees potential support for Yellen’s rhetoric, with the release of US unemployment claims and manufacturing data.
