Forex headlines for May 7, 2014:
- Highlights from Janet Yellen’s testimony
- Yellen: There is no formula or timetable for when we will raise rates
- Yellen says recent data encouraging
- Q1 2014 US labor costs flash 4.2% vs 2.6% exp
- March Canadian building permits -3.0% vs +4.0% exp m/m
- We must not be afraid of reform says Abe
- UK’s Cameron refuses to say whether he will apply the public interest test on Pfizer’s bid for Astrazeneca
- Putin says Russia wants the swiftest possible resolution of Ukraine crisis
- Jim O’Neill bets against the euro
- Gold down $18 to $1289
- WTI crude up $1.28 to $100.77
- S&P 500 up 11 points to 1879
- US 10-year yields flat at 2.59%.
- CAD leads, NZD lags
If you were hoping Tuesday was the start of a round of big moves then today was disappointing. Aside from the drop in NZD (and that happened in Asia) the market was generally quiet.
The big mover was USD/JPY as it bounced around with volatile risk sentiment. Treasury yields fell to 2.57% as Yellen was speaking but couldn’t break the January lows. USD/JPY jumped to 102.01 ahead of Yellen but slumped back to 101.60 afterwards. Late in the day, it climbed alongside stocks to 101.88.
Cable continues to drift away from 1.70 and finishes on the lows of the day at 1.6954.
The commodity currencies didn’t do much of anything in US trading. AUD/USD tried the downside in a quick break lower but a dip to 0.9319 was bough and it was sideways from there. Last at 0.9334.
And don’t forget, today is World Password Day so do yourself a favor and change a password or two.