Markets Look to Yellen as S&P 500 Tries to Hold, Euro and Yen Rally
• Top event risk ahead is Janet Yellen's testimony as traders look for language that could save faltering sentiment
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Investor sentiment is tottering dangerously with the S&P 500 pressured into repeated last-minute saves at its multi-year support, USDJPY extending its break through 116 and Euro showing playing its unusual safe haven role. The uncertainty and value gap underlying the market is nothing new. As shares and USDJPY have leveled off over the past year, other more risk-intensive assets like high-yield, emerging markets and commodities have lost substantial ground. But the conspicuousness from these more conventional and stalwart assets is troubling. The markets seem in need of a steady stream of 'good news' - like the BoJ's adoption of negative rates - just to hold back the crush of deleveraging. Up next, there is talk of a central bank being forced to respond to these unfavorable market developments, and Fed Chairwoman Janet Yellen's testimony before Congress is seen as the ideal opportunity. Will she 'save' the markets? Can she? We look at threat of seismic shifts in our markets in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.