USD broadly higher ahead of Yellen testimony

USD/JPY edged up higher in the Asian session from 118.78 to 119.14. The dollar was broadly bid but caution remains ahead of a key risk event today – Fed Chair Janet Yellen will give her testimony on the Semiannual Monetary Policy Report before the Senate Banking Committee, in Washington DC. Most believe Yellen will not be as dovish tonight as in the past. Meanwhile, another risk event today will be Greece’s proposals to creditors. EUR/JPY bounced from 134.67 to 134.97 in sympathy. Euphoria over a possible EU-Greek bail-out extension has subsided however, and the bias is more down.

EUR/USD opened in Asia at 1.1335 after rebounding from 1.1295 in Europe yesterday after the dollar fell on weaker than expected housing data. The pair traded a tight 1.1323-41 range in Asia with many investors sidelined ahead of FOMC Chair Yellen’s Senate testimony tonight. Unless there any further glitches, Greece will unveil proposals for reform later today and the EU will extend its bail-out.

GBP/USD fell back in Asia from 1.5458 to 1.5430 in line with broad USD strength and making some tracks away from last night’s 1.5475 high. EUR/GBP steadied after falling to 0.7326 last night. Asia saw it trade 0.7332-41.

USD/CHF consolidated yesterday’s gains between 0.9498-0.9521 in Asia. EUR/CHF too steadied between 1.0761-87 in Asia after yesterday’s modest gain.

AUD/USD opened in Asia at 0.7802, After a quiet start and range-trading between 0.7797-0.7807, it tumbled in sympathy with NZD/USD to 0.7762. The kiwi was hit hard on abating RBNZ inflation expectations. The dovish results saw NZD/JPY plunge from 89.59 to 88.89.

The post USD broadly higher ahead of Yellen testimony appeared first on Forex Circles.

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