The Greenback continued to depreciate yesterday after Trumps first press conference since his election. The EUR/USD and GBP/USD trend higher and remained strong throughout the day as little news or data hit the wires to stop the Dollar slipping. Trumps comments failed to provide policy details to the market which led to a sharp selloff of the USD as investors had little reason to believe that he will spur growth in the States. GBP/USD managed to defend a key resistance point over the past 24 hours just before this Trump driven recovery.
Federal Reserve Chair Janet Yellen addressed markets late last night. Yellen was relatively hawkish, stating that the US economy face no serious short-term obstacles. The Fed Chair went onto say that inflation is “pretty close” to the Feds target of 2 percent. “Unemployment has now reached a low level, the labour market is generally strong and wage growth is beginning to pick up”, Yellen said in Washington last night. The comments helped to give the Greenback a small nudge higher against the majority of its counterparts.
Today’s economic docket will be dominated by the States as a number of high tier pieces of data hit the wires. Firstly, the US release their monthly Retail Sales for December, which is forecasted to increase to 0.5% from previous 0.1%. Shortly after we have the University of Michigan consumer sentiment. US PPI is also released this afternoon, scheduled to decrease to 0.1%.
Have a good day.