Yellen Reiterated The Importance of Quantitative Easing and Cautioned Against Removing Stimulus Measures Too Soon

Good day friends, all eyes is on Fed Chairwoman Yellen comment, A mixed session for the US dollar saw the currency swap hands marginally lower on average against its major trading partners. A widening trade balance and softer than expected unemployment claims did little to support the Greenback as investors focus was drawn to the testimony of incoming Fed Chairwoman Janet Yellen and her address to the 12 member Senate Banking Committee. Yellen reiterated the importance of quantitative easing and cautioned against removing stimulus measures too soon. Her comments largely re-affirmed her dovish stance and forced analyst to again look to March 2014 as a realistic starting point for Fed tapering.

The USD pushed through the critical 100 mark against the Yen topping out at an intraday high of 100.14 and opens this morning's session still above the psychological barrier. As Japan's GDP expanded to 1.9% for the 3rd quarter local investors looked to foreign assets for a greater return, with real term interest rates in Japan at all-time lows it is little wonder Japanese investors are looking to increasing global interest rates.

Meanwhile In other news the Euro sidled slightly higher during North American trade recovering earlier losses made on the back of weaker than expected French and German GDP readings and opens this morning relatively unchanged at 1.3457.  

Data releases

AUD: No Data

NZD: No Data

JPY: No Data

GBP: MPC Member Miles Speaks

EUR: CPI and Core CPI, ECOFIN Meeting and Italian Trade Balance

USD: Empire State Manufacturing Index, Import Prices, Industrial Production, Capacity Utilisation Rate and Wholesale Inventories.

Source: ozforex