The much anticipated speech by Fed Chair Janet Yellen yesterday saw the head of the Federal Reserve continuing her recent dovish tone. Yellen stated that her optimism on inflation strengthening might be wrong and that the FOMC was not on a preset course of tightening. She offered no clues whether the Fed will hike rates in April as suggested by other FOMC members over the past two weeks. Ms. Yellen said that US economic activity has seen little change since December and that the Federal Reserve will respond to the changes in outlook as needed. The US Dollar fell broadly across the board on her comments with EURUSD moving back close to the $1.130 resistance. Gold rose on Yellen’s statements with June COMEX gold up $15.50, or 1.3%, to settle at $1,237.50 an ounce.
Yellen Continues Dovish Tone, Dollar Drops, Gold Up
Daily Analysis - 30/03/2016