FX markets trade within tight ranges as Yellen takes a levelled approach
City Index February 12, 2014 2:12 PM
<p>The FX markets continue to trade in tight ranges as risk trades with a feel good factor. Federal Reserve Chair Janet Yellen stuck to the […]</p>
The FX markets continue to trade in tight ranges as risk trades with a feel good factor. Federal Reserve Chair Janet Yellen stuck to the Fed line in her first testimony yesterday and gave a more levelled approach than her usual dovish tone whilst reiterating that the US jobs market is ‘far from complete’. The US House had approved a bill to extend the Federal government’s borrowing, which would suspend the debt limit and allow the government to borrow until March 16 next year.
Chinese trade data came in higher and kept the good vibe going. The latest customs report shows January exports rose 10.6% year on year, with imports also rising by 10.0% over the same period. The data is surprising given the traditional slowdown for the Chinese New Year.
The proud pound will be the focus this morning when the quarterly inflation report is released at 10.30am, with many speculating that the bank will lower its employment threshold and adjust forward guidance. Although I feel that Governor Carney has reiterated many times that the unemployment rate is not a trigger point as they evaluate the wider spectrum of the labour market. I believe he will acknowledge the recovery in the UK economy whilst upgrading growth forecasts.
Supports 1.3620-1.3580-1.3460 | Resistance 1.3655-1.3685-1.3740
Supports 102.30-102.00-101.60 | Resistance 102.85-103.00-103.60
Supports 1.6380-1.6350-1.6270 | Resistance 1.6470-1.6520-1.6580
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.