Yesterday was a significant one for the US economy, as new Chairwoman of the US Federal Reserve Janet Yellen held her first testimony. In this, she stated that recovery in the crucial labour market was ‘far from complete’, and that the tapering of the Federal Reserve’s quantitative easing programme is not on a ‘pre-set course’. Her caution and need for further evidence of an improving labour market introduced some uncertainty over the continued tapering, causing the US dollar to fall to its lowest level in four weeks, the lowest level against sterling in particular. The US currency’s losing streak against the euro was also extended to the longest in two months, as this wariness dampened investor enthusiasm.
There is little of particular significance today, with the Federal Budget Balance amongst smaller releases, while analysts are pessimistic ahead of Thursday’s retail figures.
Wondering whether to buy or sell US dollars? Get in touch with your trader now for the latest rates, as the new Chairwoman’s words give investors food for thought.