USD holding above 91 after Yellen's comments on interest rates
By Scott Andrews
USD index 05 05 2021
The US dollar retested 91.30 over night on the back of Janet Yellen’s comments on interest rates needing to rise modestly given the large government stimulus spending being undertaken. Overall these comments had a more dramatic impact on the equity markets with a distinct risk off mood present, in particular the NASDAQ was down nearly 2% showing the jitters investors have with growth stocks still.
Looking into more details on this economic forum that Yellen presented at it becomes clear that more explanation is given and she adds no urgency is present on this matter and the Federal Reserve has tools in place to deal with higher inflation in due course.
This back step in Yellen’s interest rates comments was illustrated in the price action as price held in it’s current range and didn’t move beyond 91.30. No current trade is on personally as I’d like to see tonight’s session and whether we see a flip back to risk on which would help move the US dollar lower. See more articles on the latest Forex news and analysis at www.forextradingasia.com
Edited 05 May 2021, 09:44
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