Dollar firm after Yellen keeps 2015 rate hike expectations alive

Posted On 25 Sep 2015

The dollar is firmer after Federal Reserve Chair Janet Yellen reiterated her expectation that the U.S. central bank would lift rates this year.

USD/JPY jumped to 120.35 on her comments late on Thursday during her speech that was titled “Inflation Dynamics and Monetary Policy” at the University of Massachusetts, in Amherst. Yellen was decidely hawkish in terms of wanting a rate hike before year end.

Yellen’s remarks come a week after the Fed delayed a long-anticipated move following an FOMC meeting.

EUR/USD opened on Friday at 1.1123 and traded 1.1160-1.1234 in Asia. The pair was marked sharply lower on Yellen’s 2015 rate hike speech and unlike other pairs there was no recovery.

GBP/USD opened in Asia at 1.5237 and traded 1.5205-40 in Asia.

AUD/USD moved lower on Yellen’s comments but crawled back to post an intraday high at 0.7023 in line with stocks. The post-Yellen move was sharp but the market had already sold the aussie on “no hike” sentiment this week.

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Source:: Dollar firm after Yellen keeps 2015 rate hike expectations alive

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