Yellen disappoints the dollar bulls

<p>The USD has been on the back foot so far since the Janet Yellen testimony on Tuesday. There wasn’t much more to add yesterday but […]</p>

The USD has been on the back foot so far since the Janet Yellen testimony on Tuesday. There wasn’t much more to add yesterday but the wording of the text shows the forward guidance would change before the rate hike happens. This has caused a sell-off in the USD as the April rate hike bulls withdraw from the race.

Today from the US the CPI is to be released with an expected further fall to -0.6% from the CPI m/m and a rise in the Core CPI to 0.1%. This will be instrumental in the FOMC meeting next month.

In the UK the major data release of the Second Estimate GDP q/q  is expected to stay at 0.5%. This could keep the sterling up above the 1.55 level which broke yesterday and is still holding.

In the Asian Session, a weak Capex release knocks the Aussie off its 1-month high.



 1.1330-1.1310-1.1280  | Resistance 1.1390-1.1420-1.1450



118.60-118.40-118.15 | Resistance 119.10-119.30-119.60



1.5470-1.5410-1.5380 | Resistance 1.5570-1.5600-1.5670

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