Markets advance ahead of Yellen testimony

FXstreet.com (Edinburgh) - US markets are betting on a dovish tone by Janet Yellen in her testimony on Thursday, with the main indices posting decent gains and extending the recent bullish momentum. The greenback, gauged by the US Dollar index, is intensifying its intraday decline, posting weekly lows below the key support at 81.00 the figure at the moment. As of writing, DowJones is up 0.12% followed by the S&P500, 0.43% and the Nasdaq, 0.73%.

The likeliness of the BoE raising the refi rate sooner than expected weighed on the main indices across the Atlantic following the upbeat tone from the Quarterly Inflation Report and positive results from the UK labour market. The FTSE100 led the losers, down 1.44% and followed by the CAC40 and the IBEX35, losing 0.56% and 0.33%, respectively. After dipping to session lows around 1.3390, the EUR/USD managed to pick up pace and post multi-day highs in the boundaries of 1.3470.

In the commodities’ land, the barrel of WTI is recovering recent losses, currently advancing more than 1% and regaining the $94.00 mark. On the flip side, the ounce troy of the precious metal is marginally retreating around $1,270.

GBP/USD, +70 pips stronger

GBP/USD does not give in 0.73% in daily gains so far ahead of Wall Street’s closing. Market participants reacted in favor of the pound after the release of better than expected job data in the region.
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