Dollar Fall to Ten-Month Low after Yellen's Comments

USD

The Greenback was declined on Wednesday vs. all its Group-of-10 rivals to its lowest level since September, after Federal Reserve Chair Janet Yellen was not as hawkish as expected specially when expressing worries about persistently low inflation.

• The U.S. dollar index, which tracks the Greenback against six major peers, fell as much as 0.04, to settle at 95.72 pips.

JPY

The Greenback fell vs. JPY yesterday, after Federal Reserve Chair Janet Yellen said interest rates hikes would be gradual and the U.S. central bank may not be able to raise rates by "all that much." USD/JPY declined as much as 0.18% to settle at ¥112.96

GBP

The Sterling pound managed to pare its losses on Wednesday, after a batch of UK jobs and wage data came in slightly better than expected. Cable rose as much as 0.4%, to settle at $1.2935.

Gold

Gold prices rose yesterday as Federal Reserve Chair Janet Yellen said the central bank would only gradually tighten monetary policy, curbing speculation that U.S. interest rates would hike more than once this year. Spot gold rose as much as 0.3% to $1,223.11 and US gold futures for August delivery rose 0.3% to settle at $1,222.60.

Oil

On Thursday, Oil prices edged lower amid concerns about global oversupply, however;  strong Chinese imports and signs that U.S. storage tanks are gradually being drained offered some support to prices. Brent crude futures fell as much as 4% from their last close to settle at $47.70 by 06: 57 GMT, while West Texas Intermediate (WTI) crude futures fell as much as 3 cents to settle at $45.46.

The most important economic events:

• USD Fed Chair Yellen Testifies Before Senate Banking Panel: (GMT 14:00) – Important

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.