Mid-Week Markets Bullet Report – Yellen Testimony in Focus

Mid -Week Markets Bullet Report – February 15, 2017

The momentum in Dollar strength and Stock markets has continued yesterday and this morning as FED Chairwoman Janet Yellen reiterated while testifying to Congress that the FED intents to raise rates sooner rather than later.

  • Yellen also stressed that Trump’s fiscal policy (tax cuts) will lead monetary policy (higher rates). This makes trump’s policies or statements even more important to the market.
  • The comments above, boosted USD and extended stock markets record run for another day. Dow Jones rose 92.25 pts or 0.45% to 20504.41. S&P 500 rose 9.33 pts or 0.40% to 2337.58. NASDAQ rose 18.61 pts or 0.32% to 5782.57.
  • EURUSD remains under pressure after weak economic data yesterday and on-going political concerns. Major support now lies at 1.0450.  USDJPY failed to extend gains overnight, but remained bid throughout the Asian session. Resistance is now seen at 115, while support lies at 114.00 and 113.20.
  • GBPUSD was under pressure and reached 1.2440 lows from 1.2550 after weak inflation numbers indicating a slower path to a recovery and ultimately rising interest rates.

It seems that the market is overall very sensitive once again to any indication to changes in interest rates after not reacting as much to any such related news in January and early February.

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