The Greenback continued to weaken yesterday after its run of six consecutive sessions of gains which ended on Monday. Last week, further signs showed that Fed members were becoming more confident in the economic recovery, leading to speculation that rates could still rise this half of the year. Although the majority of these hawkish comments were made by non-voting members of the Federal Reserve. Fed Chair Janet Yellen spoke late in the European session yesterday at the Economic Club of New York. Yellen went on to say that it is appropriate for US central bankers to “proceed cautiously” in raising interest rates because the global economy presents heightened risks. Fed Chair Janet Yellen’s comments sent the Dollar tumbling against the majority of its counterparts.
Liquidity returned to the markets yesterday as we approach another busy economic docket, with the week finishing with Non-Farm payroll figures. Yesterday, the US released another high tier piece of data in the form of CB Consumer Confidence. Consumer Confidence in the US continued to rise, posting a better than expected reading of 96.2 as confidence in the service sector remains strong.
Two key economic indicators are due for release today, both from the US. Firstly, ADP Non-Farm employment change is scheduled for release at 13:15 BST as we gain an early indication of how the all-important jobs report on Friday could look. Shortly after, Crude Oil Inventories from the US is forecast to register a substantial drop of 7m to 2.4M barrels.