Bullet Report | Yellen Delivers a Bazooka

  • In typical Janet Yellen fashion, the chairwoman came off as exceedingly cautious on the outlook for the US economy. Though she is just one of many voting members of the FOMC, her views typically reflect the influential ‘core’ of the Fed, so many traders are taking this as a sign that we may not see any further interest rate hikes in the US until 2017.
  • The market reaction was brutal against the USD which was sold off across the board with USD index dropping 0.6% immediately after the news.
  • Currencies: The most commonly traded pair EURUSD skyrocketed from 1.1195 to 1.1300 where it stalled and trades now. Markets now focus on data from Germany as well as the US, which are expected to have major impact on the EURUSD. GBPUSD and other majors traded in similar fashion.
  • OIL and GOLD: GOLD climbed from $1225 to $1242 in a move that was not expected by the majority of traders. Focus now turns to $1250 Resistance level ahead of $1280 which is also this year’s high. OIL’s rally was not that impressive and had a late reaction of 50 cents to the USD selloff. It climbed from $38.10 to $38.60.
  • Indices: Undoubtedly most action was found In the Indices yesterday where indicatively DOW Jones and Nasdaq recorded one month gains. Overnight in Asia, the indices rally was not carried over as only Australia and China joined the party with Japanese Nikkei not impressed by Yellen’s comments.
  • Action today turns to the all-important US ADP Employment Report and German CPI

The post Bullet Report | Yellen Delivers a Bazooka appeared first on Forex.Info.

Source:: Bullet Report | Yellen Delivers a Bazooka

About the Author
With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. [space height="20"] Trade 300+ markets including currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! [space height="20"] Welcome to the exciting world of trading. Welcome to easyMarkets.

Related Posts

Leave a Reply