US Market Wrap: Yellen says rates are going up, er, sometime, maybe
- Australia: AIG Performance of Construction Index – May: 2330 GMT
- Nothing of note
Federal Reserve chair Janet Yellen’s Philadelphia speech may have been the marquee event of the day but she didn’t get to hog the spotlight. UK Brexit polls led to GBPUSD trying and failing to break support at 1.4350 in Europe and then New York traders reversed the move in case Yellen was dovish. EURUSD slept throughout the morning, awoke with a start on the Yellen speech headlines and then quickly went back to sleep.
USDCAD became the biggest G10 currency mover of the day during the New York session when it snapped support at 1.2900 and fell to 1.2805. General US dollar weakness and rising oil prices were behind the move. A steady AUDUSD rally was briefly interrupted by the Yellen speech headlines but the currency quickly resumed the uptrend.
For the record, Yellen wasn’t too bummed out about Friday’s employment report saying “Although this recent labour market report was, on balance, concerning, let me emphasise that one should never attach too much significance to any single monthly report. Other timely indicators from the labour market have been more positive”.
US equity traders apparently liked what they heard. All US indices closed higher on the day and the S&P made another 2016 high.
For a different perspective on markets, Georgio Stoev, Product Manager Futures and Options provides some insight in: Volatility Update: Markets stalling on lacklustre econ data.
– Edited by Gayle Bryant
Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to engage with Saxo Bank's social trading platform.
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