USD tumbles in the market on Yellen comments

By FXStreet The US dollar dropped sharply after the release of Janet Yellen speech, that was seen as dovish by market participants. The Fed Chair mentioned that they must processed with caution with rate hikes and regarding inflation, explained that it is too early to see if the recent pickup in core inflation “will prove durable”.

EUR/USD jumped above 1.1250 and reached 1.1270, a new 1-week high while GBP/USD extended gains and move toward 1.4400, since the beginning of the week it has risen more than 200 pips.

The yen soared versus the dollar pushing USD/JPY below 113.00 but the Japanese currency weakened in the market amid risk appetite. Stocks erased losses. The Dow Jones rose more than a hundred points with Yellen’s comments and is now up 0.35%.

Commodity currencies extended gains versus the US dollar. AUD/USD broke above 0.7600 moving closer to March highs, while NZD/USD climbed to 0.6859. USD/CAD printed fresh lows under 1.3100, weakened also by the recover in crude oil price. The WTI barrel is still down by more than 2%, but it moved off lows and currently stands around $38.50.

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Source:: FX Street