{"id":2620,"date":"2021-01-19T08:20:38","date_gmt":"2021-01-19T08:20:38","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=2620"},"modified":"2021-01-19T09:45:39","modified_gmt":"2021-01-19T09:45:39","slug":"greenback-slips-ahead-of-yellen-testimony","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/greenback-slips-ahead-of-yellen-testimony\/","title":{"rendered":"Greenback slips ahead of Yellen testimony"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2620\" class=\"elementor elementor-2620\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ff74a48 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ff74a48\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5960149\" data-id=\"5960149\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4aa297d elementor-widget elementor-widget-text-editor\" data-id=\"4aa297d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>High expectations<\/strong><\/p><p>Market sentiment has seen a strong pick-up in early-Tuesday trade following reports that incoming US Treasury Secretary Janet Yellen is set to get behind Joe Biden\u2019s proposed $1.9 trillion COVID-19 relief bill.<\/p><p>Yellen is set to testify later today before Congress and has already said <em>\u201c<\/em><em>Right now, with interest rates at historic lows, the smartest thing we can do is act big. In the long run, I believe the benefits will far outweigh the costs&#8221;<\/em>.<\/p><p>Yellen will also touch upon the Biden administrations foreign exchange policy. Initial indication suggest that she will reaffirm the United States commitment to a market-determined level for the <a href=\"https:\/\/bit.ly\/37m9dMU\" target=\"_blank\" rel=\"noopener\">US dollar<\/a> currency.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-07b52e0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"07b52e0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-655cd79\" data-id=\"655cd79\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d7a3436 elementor-widget elementor-widget-image\" data-id=\"d7a3436\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/USDIndMar21-4h-2.png\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9d6f229 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9d6f229\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-74b00ad\" data-id=\"74b00ad\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ab338c8 elementor-widget elementor-widget-text-editor\" data-id=\"ab338c8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The initial market reaction to Yellen\u2019s stance has been to sell the US dollar, with traders moving into riskier currencies, and selling the <a href=\"http:\/\/bit.ly\/2OJjKKR\" target=\"_blank\" rel=\"noopener\">Japanese yen<\/a> currency. In fact, the biggest market movers in the foreign exchange market this morning have been yen crosses.<\/p><p>With risk sentiment riding high the natural reaction has been a flight into antipodean currencies. The <a href=\"http:\/\/bit.ly\/2yFD0hu\" target=\"_blank\" rel=\"noopener\">Aussie<\/a> and the <a href=\"http:\/\/bit.ly\/2KflF5J\" target=\"_blank\" rel=\"noopener\">Kiwi<\/a> are currently the top performing currencies against the US dollar and the yen this morning.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4a61c6a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4a61c6a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3587a6b\" data-id=\"3587a6b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4f3dd06 elementor-widget elementor-widget-image\" data-id=\"4f3dd06\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"602\" height=\"297\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/AUDUSD-1H.png\" class=\"attachment-large size-large wp-image-2624\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b74b920 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b74b920\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-384605a\" data-id=\"384605a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-98435e2 elementor-widget elementor-widget-text-editor\" data-id=\"98435e2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The <a href=\"http:\/\/bit.ly\/2YAQOVh\" target=\"_blank\" rel=\"noopener\">euro<\/a> and <a href=\"http:\/\/bit.ly\/2Zn4HaM\" target=\"_blank\" rel=\"noopener\">British pound<\/a> have also started to edge higher against the greenback. Sterling may be receiving a boost from news that the so-called \u201cBig Mac\u201d index has stated that the British pound is currently 22 percent undervalued against the US dollar.<\/p><p>Looking at the euro currency, the recent fears about Italy have been swept aside for now. Italian and German bond yields have stopped widening. With the ECB meeting coming this Thursday, euro and bond traders may wait until the meeting is over before fully committing themselves to a market position.<\/p><p>Another big story this morning is the Hang Seng. The leading Hong Kong index has staged a major rally towards the 30,000 level, posting intraday gains of over 2 percent. The rise is reportedly being driven by inflows from mainland China, and risk-on market sentiment.<\/p><p>The <a href=\"https:\/\/bit.ly\/3aPYU60\" target=\"_blank\" rel=\"noopener\">Nikkei 225<\/a> is also on the rise today, although no new all-time high for the leading Japanese index. Reports this morning suggest that the Bank of Japan may outline plans to make it easier for the central bank to buy bonds during this week\u2019s meeting.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8117804 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8117804\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d607525\" data-id=\"d607525\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-920b078 elementor-widget elementor-widget-image\" data-id=\"920b078\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"602\" height=\"294\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/Jp225Mar21-1d-1.png\" class=\"attachment-large size-large wp-image-2625\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b3c3d79 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b3c3d79\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-88acc32\" data-id=\"88acc32\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-13bf6c5 elementor-widget elementor-widget-text-editor\" data-id=\"13bf6c5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><a href=\"https:\/\/bit.ly\/3mx6EMD\" target=\"_blank\" rel=\"noopener\">US futures<\/a> are also on the up, following a market holiday in the United States on Monday. Once again, futures appear to be reacting positively to the Yellen news, and the overall improvement in market sentiment.<\/p><p>Aside from Yellen\u2019s testimony and Biden\u2019s inauguration, the big risk events for US stock markets will be US earnings season and Friday\u2019s preliminary US Manufacturing PMI. The <a href=\"https:\/\/bit.ly\/3mBrxpW\" target=\"_blank\" rel=\"noopener\">US 10-Year yield<\/a> is also worth watching this week to gauge the bond markets reaction to this week\u2019s headline events.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-34fadb0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"34fadb0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-132dd5c\" data-id=\"132dd5c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b9f1613 elementor-widget elementor-widget-image\" data-id=\"b9f1613\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"602\" height=\"307\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/CHART-1-8.png\" class=\"attachment-large size-large wp-image-2626\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-61a2362 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"61a2362\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9550ed8\" data-id=\"9550ed8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-65c1e92 elementor-widget elementor-widget-text-editor\" data-id=\"65c1e92\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Looking ahead to the European trading season, the release of the German ZEW survey will be the main event for EU stocks and the euro currency. The ZEW survey is important as it lays how investors feel about the German economy.<\/p><p>The <a href=\"https:\/\/bit.ly\/2KrHPof\" target=\"_blank\" rel=\"noopener\">German DAX<\/a>, <a href=\"https:\/\/bit.ly\/3aTacGO\" target=\"_blank\" rel=\"noopener\">ITA40<\/a>, and <a href=\"https:\/\/bit.ly\/2XSYbcz\" target=\"_blank\" rel=\"noopener\">CAC40<\/a> have risen in early trading, largely boosted by the positive Asian session. The <a href=\"https:\/\/bit.ly\/3ra7ySw\" target=\"_blank\" rel=\"noopener\">UK100<\/a> is on the rise and attempting to break above a falling price channel and reclaim the 7,000 level.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>High expectations Market sentiment has seen a strong pick-up in early-Tuesday trade following reports that incoming US Treasury Secretary Janet Yellen is set to get behind Joe Biden\u2019s proposed $1.9 trillion COVID-19 relief bill. Yellen is set to testify later today before Congress and has already said \u201cRight now, with interest rates at historic lows, [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,6,9,2,7],"tags":[52,59,14,54,18,57,20,217,181,215,150,53,40,22,216],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Greenback slips ahead of Yellen testimony - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/greenback-slips-ahead-of-yellen-testimony\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Greenback slips ahead of Yellen testimony\" \/>\n<meta property=\"og:description\" content=\"High expectations Market sentiment has seen a strong pick-up in early-Tuesday trade following reports that incoming US Treasury Secretary Janet Yellen is set to get behind Joe Biden\u2019s proposed $1.9 trillion COVID-19 relief bill. 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