15 Nov 2013
Flash: GBP/USD a notable winner from Yellen testimony - Investec
FXstreet.com (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec comments that he always likes to look forward in his market commentary, but with Fed President Nominee Janet Yellen testifying in front of the Senate Banking Committee yesterday, he feels that it’s important to analyse the current impact on the market.
Key Quotes
“Yellen continued the anticipated dovish tone from her speech through to the Q and A session, highlighting 'there is no set time for QE tapering', going on to praise the effects QE has had through the crisis and warned there are 'dangers on both sides of ending QE too early'.”
“So it seems she’ll look to continue easing policy undeterred by the risk of asset bubbles forming. We noted there were a lot of leading questions yesterday and it is clear the Fed wants to clarify its stance much more under a Yellen leadership, after some mixed signals this year on policy timing from current Fed chair, Bernanke.”
“The USD weakened against EUR and GBP. Against the JPY (which was in a world of its own from Nikkei future strength) we saw USD making gains of 1% yesterday.”
“GBP/USD was a notable winner, moving from the sub 1.6000 lows after the disappointing Retail Sales in the morning to trade briefly at 1.6100 after Yellen had spoken. In other data out yesterday Euro-area GDP and UK Retail sales were disappointing.”
Key Quotes
“Yellen continued the anticipated dovish tone from her speech through to the Q and A session, highlighting 'there is no set time for QE tapering', going on to praise the effects QE has had through the crisis and warned there are 'dangers on both sides of ending QE too early'.”
“So it seems she’ll look to continue easing policy undeterred by the risk of asset bubbles forming. We noted there were a lot of leading questions yesterday and it is clear the Fed wants to clarify its stance much more under a Yellen leadership, after some mixed signals this year on policy timing from current Fed chair, Bernanke.”
“The USD weakened against EUR and GBP. Against the JPY (which was in a world of its own from Nikkei future strength) we saw USD making gains of 1% yesterday.”
“GBP/USD was a notable winner, moving from the sub 1.6000 lows after the disappointing Retail Sales in the morning to trade briefly at 1.6100 after Yellen had spoken. In other data out yesterday Euro-area GDP and UK Retail sales were disappointing.”