The EUR/USD today hit new lows after upbeat comments from the New York Fed’s William Dudley during the North American session reignited buying interest in the US dollar. The currency pair was consolidating in a tight trading range for most of today’s session, but Dudley’s comments caused the US dollar to gain against the euro.
Dudley’s comments caused the currency pair to break out of its tight range and lose over 40 points at the height of it’s decline.
The lack of economic releases from both the US and the European dockets, the currency pair has been in a sideways trend for most of the European session. This made the pair extremely susceptible to the Federal Reserve Bank of New York President William Dudley’s comments. The release of a minor construction report by the Eurostat had little impact on the currency pair as it indicated that the sector grew by 3.2%, which was aligned with current growth estimates.
Dudley’s comments supported Janet Yellen‘s comments from last week where she also outlined a hawkish outlook for the rest of the year. Dudley said that the US economy would continue to grow into the foreseeable future. The US Dollar Index, which tracks the greenback’s performance, was trading above its opening price of 97.12 for most of today’s session.
The currency pair’s future performance is likely to be influenced by speeches from other Fed speakers such as Stanley Fischer, Charles Evans and Eric Rosengren.
The EUR/USD currency pair was trading at 1.1167 as at 15:01 GMT having dropped from a high of 1.1212. The USD/JPY was trading at 111.31 having rallied from a low of 110.87.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
