Pound recovers on May’s Brexit outline, USD looking for clues as Yellen set to speak today

The US Dollar index slipped to below 101 levels yesterday and is currently trading at 100.64. The Dollar looks as if its taken a pause ahead of Janet Yellen’s monetary policy speech expected later today. The public will be screening the speech for clues on the possible future direction of policy.

USDJPY closed at seven week lows at 112.62, today we are currently trading at 113.33 as we await Yellen’s speech.

EURUSD hit 6-week highs yesterday as the euro capitalised on Dollar losses. EURUSD hit highest of 1.0719 and is currently at 1.0683 as the Dollar makes a small comeback this morning.

In a speech on Tuesday New York President Dudley, a member of the FOMC and also San Fransisco Fed President Dudley indciated that 2% inflation seemed likely within the next years.

As was expected, yesterday Theresa May outlined some more details from Britain’s intended Brexit approach. She will ask parliament to vote for whatever deal would have been conculded with the EU, she has also reiterated that Britain will look for a clear exit as opposed to compromising to keep any other benefits of the EU.

The immediate result was a swift GBP recovery, at least for the day, after having lost significant ground against both the euro and the USD so far this year. On Tuesday GBPUSD opened at 1.2044 but saw highs of 1.2416. practically recovering all 2017 losses so far. EURGBP slipped to session lows of 0.8626 throughout’s yesterday’s session, after having opened at 0.8791 earlier on Tuesday.

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