All eyes on Yellen and economic data

After a quiet week, with cable mainly range-bound in the $1.24-1.25 range, dollar traders are now looking to the busy data week ahead.

Federal Reserve Chair Janet Yellen’s semi-annual testimony to Congress begins today and ends tomorrow. Markets will be keeping a close eye on any potential changes to monetary policy following Donald Trump’s proposed fiscal stimulus. Any indication of further rate hikes later in the year will likely strengthen the dollar.

Also out will be retail sales figures, industrial output and CPI inflation for the month of January – all key data pieces which could add to the volatility we’re already seeing in the market now.