USD 

The dollar barely reacted to Fed head Yellen’s testimony since she merely repeated their statements during the FOMC decision and reiterated that inflation is running below the committee’s long-run objective.

FOMC members Harker and Kashkari didn’t cause any big moves for the dollar as well. US pending home sales are due next and a 0.9% rebound is eyed. 

EUR 

The euro enjoyed a strong boost when ECB head Draghi hinted that they could withdraw stimulus at some point, reviving speculations of tapering. There were no major reports out of the region and only medium-tier figures, namely German import prices and Italian preliminary CPI, are lined up next.

GBP 

The pound was still under some selling pressure as its other European currency rivals took most of the gains. BOE Governor Carney had a speech that sounded mostly cautious, but the CBI realized sales index posted a strong climb from 2 to 12, outpacing the consensus at 4. BOE Governor Carney has another speech coming up. 

CHF 

The franc followed the euro’s tracks in rallying against its peers. There were no reports out of the Swiss economy then but the improved sentiment in the region shored up the currency. The Credit Suisse economic expectations index is due next ad an improvement over the earlier 30.8 figure could mean more franc gains. UBS will also print its consumption indicator. 

JPY 

The yen gave up more ground to its peers as risk sentiment continued to improve and traders still favored the dollar over the Japanese currency. There were no reports out of the Japanese economy recently but Kuroda did hint that they are reluctant to withdraw stimulus. He has another speech coming up. 

Commodity Currencies (AUD, NZD, CAD) 

The comdolls continued to rake in gains against lower-yielders but gave up ground to European currencies. BOC Governor Poloz has a speech lined up and he previously gave an upbeat assessment and outlook for Canada, which could shore up the Loonie again even with weaker oil prices. New Zealand’s trade balance turned out weaker than expected at 103 million NZD versus 420 million NZD while the earlier reading was downgraded. 

By Kate Curtis from Trader’s Way