While it was business as usual for stock markets which set another record high, the Dollar had a U turn trading day as it initially jumped on upbeat US data, only to give up those gains after FED’s Yellen speech
Data on Wednesday showed U.S. consumer prices recorded their biggest gain in nearly four years, jumping 0.6 percent in January. Retail sales also outpaced expectations, increasing 0.4 percent last month compared to the analysts’ poll of 0.1 percent.
As a result, the USD peaked at 1 month highs versus a basket of currencies. At one point, EURUSD bottomed at 1.0520 – a month low, while hit 115.00 before the USD retreated. Sterling last stood at $1.2460, edging up from a one-week trough of $1.2384 touched on Wednesday, knocked by slowing wage growth in the fourth quarter
The Dollar gave up all gains though shortly afterwards, while during Jellen’s testimony before congress, she hinted on raising rate just once in the upcoming meetings and most probably in June. Following these comments, traders sold of the Dollar which gave up all its gains it had posted earlier.
For Today, building permits report for January will be published at 13:30 GMT, along with Housing starts statistics, Philadelphia Fed Manufacturing survey and weekly jobless claims report.
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Source: Easy Forex Forex.Info