The speech of Janet Yellen had no impact on the U.S. dollar rate | IFCM UAE
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The speech of Janet Yellen had no impact on the U.S. dollar rate - 12.2.2014

The speech of the new chairman of the U.S. Federal Reserve, Janet Yellen, had no significant impact on the U.S. Dollar rate. She declared that she intends to follow the policy of his predecessor, Ben Bernanke, in further reductions of redemption volumes of U.S. government bonds. And that redemption will be ''moderate''. She also said that the Fed is going to keep the current low discount rates for an indefinite period. Recall that it was previously assumed to increase rates in case of the reduction of unemployment rate below 6.5% and the maintenance of inflation rate below 2%. Now it will not happen. In general, the information from the Fed proved to be controversial and has not yet impacted on the U.S. currency. Today no significant economic data is expected from the USA.

AUDUSD, Daily

The Australian Dollar (AUDUSD) continued strengthening (growth on the chart), due to strong Chinese data on foreign trade. China is the major buyer of natural raw materials from Australia. Its import in Janauary 2014 grew by 10%, compared with January of the previous year, and export - by 10,6%. The trade surplus will be $31,9 billion, by far exceeding forecasts.

The British Pound (GBPUSD) strengthened (growth on the chart) before the release of the quarterly report on inflation from the Bank of England at 10-30 GMT (0). Meanwhile, most investors believe that there will not be a growth in the discount rate at least before parliamentary elections in May next year. It gives a chance to reduce the pound if the report is negative.

The Canadian Dollar (USDCAD) strengthened (decrease on the chart) due to the improvement of the planned budgetary indexes for 2014-2015 fiscal years. The Ministry of Finance in Canada has reduced the planned deficit from C $ 5,5 billion to C $ 2,9 billion.

WHEAT, Weekly

The wheat prices (WHEAT) are showing good growth. The Ministry of Agriculture in the USA in its monthly report has unexpectedly reduced the forecast for wheat reserves by 50 million bushels up to 558 million. It is significantly less than the preliminary forecasts, which were 603 million bushels.

Natural gas (NATGAS) increased in price on expectations to reduce its reserves in the U.S. for a week by 232 billion cubic meters feet. Official figures will be released on Thursday.

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