A busy day was expected on Wednesday for the US Dollar, with Federal Reserve Chair Yellen continuing her testimony in front of the House Financial Services Committee. However the main points taken from this statement were mainly reiterations from the first part of the testimony on Tuesday, and as such had limited effect on the market. In conjunction with this, New Homes Sales data was also released yesterday – and this showed a positive figure for the housing market in the US.
Today is a busy day for data which may well benefit the US dollar if positive. Consumer Inflation is expected to rise when compared to the previous month. However, we have already seen these figure come under pressure of late, due to the recent fall in energy costs. The weekly unemployment claims are also due and these have shown a positive trend lately – backing up comments made by Federal Chair Yellen that she expects continued growth in the employment market. Lastly, Durable Goods Orders data will be released, which are expected to be positive and show confidence for consumers.