News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Breaking news

Moderna CEO Predicts Vaccines to Struggle with Omicron - FT

Graphic Rewind: US Dollar Sways a Bit on Yellen Comments and UK Inflation

Graphic Rewind: US Dollar Sways a Bit on Yellen Comments and UK Inflation

Benjamin Spier, Technical Strategist

Talking Points:

  • US Dollar Index barely changed for the week
  • US Dollar fails to remain lower despite a dovish Yellen

A look back at the past week of Forex trading using movements in the US Dollar Index:

US Dollar 1-Hour 17:00 11/11 to 12:00 11/15 EST

Graphic_Rewind_US_Dollar_Sways_a_Bit_on_Yellen_Comments_and_UK_Inflation_body_Picture_1.png, Graphic Rewind: US Dollar Sways a Bit on Yellen Comments and UK Inflation

Want to trade with proprietary strategies developed by FXCM? Find out how here.

Despite a week when our views of the US and UK economy were significantly shifted by announcements in both places, the Dow Jones FXCM Dollar Index level is barely changed from the Monday open.

The US Dollar rallied on Tuesday morning on a UK inflation rate reported at 2.2%, which was significantly lower than expected. The Pound quickly showed weakness against other majors like the US Dollar, but those Pound losses were erased over the rest of the London session.

On Wednesday, the US Dollar began a significant decline ahead of soon-to-be Fed Chairman Yellen’s speech, following her recent nomination announcement. Yellen didn’t disappoint those dovish expectations; she said that unemployment is still high and the economy needs further support. Her comments sent the greenback to the weekly low, but the losses were soon pared.

On Thursday, the US Dollar again rallied on Pound weakness, this time because of a disappointing UK industrial production release. Those US Dollar gains were again erased, this time on Yellen saying that broader unemployment measures are higher than 7.3% in s Q&A session.

Today, the Pound took gains against the greenback on BoE’s Weale’s comments that the central bank has raised its expectations for price changes and the economy is recovering better than expected. The US Dollar gains were also fostered by a series of smaller, but disappointing, US economic releases.

New to Forex? Watch this video

Charts created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES