USD Continues to Suffer - Investec
Research Team at Investec, suggests that yesterday currency markets enjoyed a 'risk on' feel as the US Dollar continued to suffer in the aftermath of Fed Chair Janet Yellen's cautious rhetoric on Tuesday.
“The US Dollar, which had been falling since Monday, finally lost momentum yesterday afternoon. Fed Chair Yellen’s speech on Tuesday night was interpreted by the market as dovish, but the Dollar selling ran out of momentum overnight.
Yesterday’s London session saw the US Dollar continued to slide helping the Pound back over 1.4450 and the Euro above 1.1300 against the greenback respectively on the day. European and US stock markets also rallied yesterday as a slower pace of US monetary policy tightening is deemed positive for the global recovery.
With today the last day of the financial year for many Asian institutions, in the absence of major data, flow related moves likely dominated proceedings overnight, as they may well do today given month end.”
(Market News Provided by FXstreet)