Article Highlights

  • U.S. initial jobless claims at 276K vs. 270K expected, 276K previous
  • U.S. JOLTS job openings up from 5.38M to 5.53M
  • Fed head Yellen refrained from talking about monetary policy
  • Fed official Evans: Needs to see stronger inflation before tightening
  • Fed official Dudley: Possible that liftoff conditions will soon be satisfied
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Forex traders were hoping to hear stronger hints about Fed tightening from Chairperson Janet Yellen but were disappointed to find out that the head honcho was staying mum for now.

Major Events:

Fed head Yellen’s testimony – Nope, she ain’t being a tease for now! Yellen simply stuck to the script in her opening remarks at the Conference on Monetary Policy Implementation in the Post-Crisis period in Washington D.C., refraining from sharing what the Fed has up its sleeve for December. Ho hum.

Mixed remarks from other Fed officials – Testimonies by other Fed officials suggest that policymakers haven’t completely made up their minds on what to do next. According to FOMC member Evans, there needs to be more evidence of rising inflation before hiking interest rates. Meanwhile, FOMC member Dudley confirmed that it’s possible that liftoff conditions would soon be satisfied.

Mixed U.S. jobs data – U.S. initial jobless claims were slightly worse than expected, up by 276K versus the projected 270K figure. On the other hand, the JOLTS job openings data showed positive prospects for hiring, as vacancies increased from 5.38M to 5.53M.

Major Currency Movers:

USD – The U.S. dollar gave up ground to its forex peers, mostly due to the lack of hawkishness from Yellen’s speech followed by a bit of hesitation from other FOMC members.

USD/JPY is down 29 pips to 122.56 (-0.20%), EUR/USD is up 78 pips to 1.0820 (+0.73%), GBP/USD is up 20 pips to 1.5232 (+0.13%), and USD/CHF is down 45 pips and threatening to make a strong downside break of 1.0000 (-0.45%).

EUR – The euro seems to have gotten tired of its recent tumble, as the shared currency advanced against its forex counterparts even with bleak economic data and a dovish speech by Governor Draghi.

EUR/JPY is up 64 pips to 132.58 (+0.49%), EUR/GBP rose 40 pips to the .7100 major psychological mark (+0.58%), EUR/NZD surged 162 pips to 1.6533 (+1.01%), and EUR/CAD is up 132 pips to 1.4373 (+0.93%).

Watch Out For:

  • Fed official Fischer’s speech at 12:00 am GMT
  • Japan’s revised industrial production reading at 5:30 am GMT (no change from 1.0% initial estimate)
  • Japan’s tertiary industry activity index at 5:30 am GMT (0.2% expected, 0.1% previous)

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