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Yellen has once again managed to dodge the subject of interest rates.
The market largely expected her to talk about raising rates, either by providing a guideline, or at the very least sound a bit more hawkish as the important data releases (inflation, NFP, unemployment) have all showed improvement.
In fact, targets that were set out earlier this year have all been met, and some even exceeded. The irony is, that she cited these exact data releases as the reason why it would be too early to look in that direction, and that the economy stil required further improvement. She went on to say that the Fed's help is still necessary while still staying firm on plans of QE tapering.
Her statement didn't make a whole lot of sense to me, but one thing that's clear is the market.
EURUSD did not react much to her statement. The larger expectation was USD strength and what we saw was exactly that despite her dovish outlook. Either way, the price is moving exactly as expected in the webinar I conducted earlier this week. Draghi not being able to push the price down much, and Yellen being able to cause some USD strength.
This news release actually supports the view even more that we should be looking to buy EURUSD for a move to 1.3800. Without pending USD interest rate hikes looming, and Draghi being clear about wanting to see some data, there is no reason for short players to remain in the market.
The view remains the same, will be looking for 3510/3530 to buy with stops below 3500 targeting 3800
The market largely expected her to talk about raising rates, either by providing a guideline, or at the very least sound a bit more hawkish as the important data releases (inflation, NFP, unemployment) have all showed improvement.
In fact, targets that were set out earlier this year have all been met, and some even exceeded. The irony is, that she cited these exact data releases as the reason why it would be too early to look in that direction, and that the economy stil required further improvement. She went on to say that the Fed's help is still necessary while still staying firm on plans of QE tapering.
Her statement didn't make a whole lot of sense to me, but one thing that's clear is the market.
EURUSD did not react much to her statement. The larger expectation was USD strength and what we saw was exactly that despite her dovish outlook. Either way, the price is moving exactly as expected in the webinar I conducted earlier this week. Draghi not being able to push the price down much, and Yellen being able to cause some USD strength.
This news release actually supports the view even more that we should be looking to buy EURUSD for a move to 1.3800. Without pending USD interest rate hikes looming, and Draghi being clear about wanting to see some data, there is no reason for short players to remain in the market.
The view remains the same, will be looking for 3510/3530 to buy with stops below 3500 targeting 3800