- US dollar rises on better than expected new home sales
- Greenback erases gains following Yellen’s testimony
A look back at the past week of Forex trading using movements in the US Dollar Index:
US Dollar 1-Hour 17:00 02/23 to 12:00 02/28 EST
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The Dow Jones FXCM US Dollar Index saw bits of intraday volatility through this week’s trading, but the greenback looks ready to only close about 40 points lower than the weekly open at the time of this writing. There were no major events in this week’s calendar that were worthy of a major shift in US Dollar trading.
The greenback fell lower through Monday and Tuesday trading, despite a lack of significant news releases. But those losses were erased over Wednesday’s London session, and the greenback gains were extended on the release of a surprise rise in US New Home Sales in January.
However, those gains were erased on Thursday during Yellen’s testimony to the Senate. Yellen strongly supported a continuation of the current pace of taper, making the greenback selloff slightly mysterious from a fundamental perspective.
Friday’s trading saw a release of higher than expected Euro-zone inflation, which sent EUR/USD 75 pips higher. Then, US GDP slightly missed expectations for Q4, which sent the dollar lower. But neither release had a lasting effect on greenback trading, and the dollar continues to trade around 10,550 at the time of this writing.
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Charts created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .