The USD hit lows of 1.0561 against the Euro yesterday as the Fed Reserve Chair Janet Yellen appeared in front of the US Senate Banking Committee, and told them that the Fed is likley to quicken the pace of interest rate hikes in its upcoming meetings.
The US Dollar index peaked to 3 ½ weeks highs at it tested 101.38 yesterday as well. We’re expecting to see more USD strength, with charts and indicators predominantly in sell-off mode. EURUSD is however expected to to find support at 1.0569:1.0547 for today and may pullback to 1.0605:1.0619 area after.
Yellen’s appearance before the House of Represantitives continues today as well.
Meanwhile the Euro is getting under pressure as presidential elections in France, the second largest economy within the EZ, is continually showing support for Marine Le Pen the leader of the National Front and that has promised to pull France oout of the EZ.
Later today we are epecting actual data on ILO Unemployment rate for the UK and EZ trade balance, later for the US Session we have US CPI for January and Advance Retail Sales.