- No economic data releases during the morning London session.
- Markets are anticipating the new Fed Chairman, Janet Yellen, addressing the U.S. Congress on monetary policy
The economic data cupboard was empty during the morning London session, which means the currency markets had little to move on. Besides the current sentiment drivers, traders were positioning ahead of the first address to U.S. Congress by the newly appointed Federal Reserve Chairman, Janet Yellen.
Overall, the forex market moved as if it was in risk-on mode as we saw safe havens (like the U.S. dollar and the Japanese yen) weaken against high-yielding, riskier currencies. All major yen pairs are up on the day, lead by AUD/JPY who is up 88 pips (+0.98%) on the session. It’s the same deal for the Greenback as it rides lower against its major trading counterparts. GBP/USD is up 45 pips (+0.305), EUR/USD is up 27 pips (+0.20%), and the AUD/USD trading up 76 pips to .9023.
Traders aren’t expecting new rhetoric from Janet Yellen later today, just repetition that the Fed will continue on its course of lowering the monthly bond purchasing program. Now, there is a Q&A portion of her appearance, and of course, that’s when traders will most likely listen closely in case she’s thrown a curve ball and we do hear something new–that’s when the money can move.
So, stay on your toes and keep your risk tight in case the market explodes one way or another. Good luck!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!