14 July 2014 at 9:56 GMT
John J Hardy
Earnings week and a lot of macro announcements over the next few days, how will the FX markets respond? Saxo Bank's Head of FX Strategy, John Hardy, looks at how testimony from the Fed chair Janet Yellen may, or may not, affect USD. John describes Mrs Yellen as an "ultra dove" and so doesn't expect any hints of hawkish moves at all to crop up during her submissions. The only opportunity John can see in terms of the Fed effect is that markets could be over-priced ahead of any fresh sense of how tapering could end.
EURUSD is "flatlining" according to John as the recent ripples across the pond from the Portugal bank drama begin to smooth out. John thinks that EURJPY could be "more interesting" with a bank of Japan meeting early in the week and perhaps more clues about ECB direction to come.