USD 

The US dollar had a volatile day as it initially reacted positively to Yellen’s remarks but eventually returned its recent gains.

According to Yellen, the equity market selloff might have a negative impact on overall growth and that they’d continue to watch the markets closely to see if any adjustments to their tightening path should be made. She also mentioned that she’s unsure if the Fed can legally implement negative deposit rates. Initial jobless claims and another testimony from Yellen are on today’s docket.

EUR

The euro was able to advance against most of its rivals except for the Japanese yen. Data from the euro zone was still mostly weaker than expected, as France and Italy printed negative industrial production readings. There are no major reports due from the euro zone today.

GBP

The pound managed to make a quick bounce against most of its counterparts even though data from the UK missed expectations. Manufacturing production fell 0.2% instead of staying flat while industrial production sank 1.1% instead of falling by only 0.1%. There are no major reports due from the UK today. 

CHF

The franc continued to advance against most of its counterparts as it appears to be supported by risk-off flows. There were no reports out of Switzerland yesterday while today has the Swiss CPI on tap. A 0.3% decline in price levels is eyed and weak data might revive intervention speculations. 

JPY

The yen took advantage of the risk-off market mood to chalk up more gains against its rivals. There were no reports out of Japan then and Japanese banks are closed for the holidays today. 

Commodity Currencies (AUD, NZD, CAD)

The comdolls chalked up some gains against the dollar but were no match to yen strength. US crude oil inventories showed a decline in stockpiles but did little to support prices as news of energy companies suffering losses dominated the headlines. There are no major reports due from the comdoll economies today. 

By Kate Curtis from Trader’s Way