US dollar is still down today, following yesterday’s drop on the heels of remarks made by Fed Chair Janet Yellen to Congress.
Many Forex traders have been considering that the Federal Reserve will raise interest rates sometime in 2015. However, the idea of a rate hike in the United States seems further away after the first day of Chairwoman Janet Yellen’s testimony to Congress.
Yellen is testifying before Congress, as Federal Reserve Chairs do regularly, and part of her remarks include allusions to risks to the US economy. The news has many reconsidering how soon they expect to see a rate hike from the Federal Reserve, and this news is weighing on the dollar.
Even with the greenback losing ground yesterday and today, though, the dollar is still relatively strong. Indeed, the US dollar is still strong enough that it is impacting earnings forecasts for major companies like Hewlett-Packard.
At 11:31 GMT the US dollar index is lower, falling to 94.2880 from the open at 94.3940. EUR/USD is only a very little bit higher, having pared its earlier gains. The pair is at 1.1345 from the open at 1.1343, but off the earlier high of 1.1390. GBP/USD is also higher, moving up to 1.5504 from the open at 1.5458. USD/JPY is heading lower, dropping to 118.8050 from the open at 118.8930.
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