7 May 2014
EUR/USD wavers as Yellen testifies
FXStreet (Córdoba) - The EUR/USD moved lower for a short while and is trading little changed as Fed Chair Janet Yellen testifies before the Joint Economic Committee of US Congress.
Yellen remarks
Yellen said she expects the US economy to expand at a faster pace than in 2013, while unemployment continues to gradually decline and inflation moves up toward 2%. Fed Chair also said that while conditions in the labor market have improved appreciably, they are still far from satisfactory.
She reiterated the policy remains data dependant but in light of the considerable degree of slack that remains in labor markets and with inflation below 2% "a high degree of monetary accommodation remains warranted".
The EUR/USD is currently trading at the 1.3925 zone, virtually unchanged on the day after some choppy moves, still constrained within today’s range.
EUR/USD technical outlook
Valeria Bednarik, chief analyst at FXStreet notes that the short-term technical outlook remains bullish with 1.3966 as key resistance to break to confirm a run higher, “pretty unlikely for today ahead of ECB decision tomorrow”.
Yellen remarks
Yellen said she expects the US economy to expand at a faster pace than in 2013, while unemployment continues to gradually decline and inflation moves up toward 2%. Fed Chair also said that while conditions in the labor market have improved appreciably, they are still far from satisfactory.
She reiterated the policy remains data dependant but in light of the considerable degree of slack that remains in labor markets and with inflation below 2% "a high degree of monetary accommodation remains warranted".
The EUR/USD is currently trading at the 1.3925 zone, virtually unchanged on the day after some choppy moves, still constrained within today’s range.
EUR/USD technical outlook
Valeria Bednarik, chief analyst at FXStreet notes that the short-term technical outlook remains bullish with 1.3966 as key resistance to break to confirm a run higher, “pretty unlikely for today ahead of ECB decision tomorrow”.