020 7898 0500The US dollar remained range bound yesterday but investors would have been surprised to see significant short range movement on the US dollar verses a basket of currencies while the Federal Reserve Chair Janet Yellen discussed future interest-rate hikes.
For the first time since Donald Trump became president and promised to boost U.S growth, Yellen took centre stage to present her semimanual report on monetary policy to Congress. To summarise, Yellen reiterated that falling behind on tackling inflation could cause harm to the US economy but with uncertainty on President Trumps fiscal policies the Federal Reserve had to be cautious about being too aggressive on interest rate hikes. Expectations are still that we could see a 0.25% increase in US interest rates next month.
Today we have Consumer Price Inflation, Retail Sales and Crude Oil data coming out for the US. Forecasts are not expecting any large differences in the data compared to the previous month. Yellen completes her semi-annual testimony later in the afternoon.
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