Last week was published a number of statistical data for Germany and the Eurozone. According to these data, business activity in the manufacturing and services sector remains high, but the growth rate of the German economy could not impress the participants of the currency market. In general, their activity remained very low, so any interesting movements in the market was not observed. The key event of the week the speech of FRS Chairman of Janet Yellenwas scheduled for Friday, in anticipation of which no one was in a hurry to open new positions.
In anticipation of the event, the euro gradually decreased against the US dollar. As a result, it has tested support around 1.1245, the pair retraced back to the area of the 13th figure. Meanwhile, the dollar is under pressure from the Japanese yen, but to break through support at the psychological level of 100.00 the bears have failed. British pound on the background of profit-taking on short positions moved higher and tested the resistance at 1.3273.
In his speech, Janet Yellen said about the relevance of the issue to increase the interest rate, but then made it clear that the pace of further tightening of monetary policy will be moderate. Besides, she gave a fairly restrained prognosis in terms of growth of the US economy, and in no way clarified the question of the timing of rate increase. Thus, the dollar initially was growing, then fell, but its drop was used for purchases, which allowed it to finish the week higher against the main competitors. This week, the demand for it continues, the euro, the yen and the pound may continue to fall, at the same time the volatility is still low, which should be considered by IAFT traders. BlogLinks
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