Dollar Declines on Yellen’s Remarks

Dollar Declines on Yellen’s Remarks

Starting today’s report with an important quote “The Federal Reserve's ability to conduct monetary policy free of short-term political pressures is under "some threat" from two bills making their way through the U.S. Congress,” Fed Chair Janet Yellen said yesterday. Meanwhile, she said, I think we have a healthy economy now. The U.S. dollar fell yesterday negatively affected by such statement.

  • The U.S. dollar index (DXY), settled below 101 pips.

Elsewhere, Euro edged higher and settled at $1.06 vs. USD as European Central Bank President Mario Draghi said the euro zone's economy would stay on track this year despite political uncertainty around the world. He also added that the Eurozone faces challenges from the upcoming elections in France and Germany and he insisted the bank's monetary policy stance remained appropriate.

  • Technically, the common currency could trade sideways and settle at 1.06 vs. USD.

Gold settled at the beginning of the week, boosted by instability in the Middle East. The precious metal settled at $1,255 and could settle above such levels due to lack of US economic data and weak USD.

Oil prices got slightly increased yesterday due to Libya’s geopolitical risks as well as its uncertainty spread across the Middle East. U.S. crude touched $53 and could hit new highs in anticipation of the U.S. inventory data.

The most important economic events:

  • EUR German ZEW Survey (Economic Sentiment) (APR): (GMT 9:00) Important – Forecast (14.8) – Previous (12.8).

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