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    Dollar has become ragged by the moment of Yellen's speech

    According to outcomes of previous day, market players feel nervous before speech of the Fed head. Even trade currencies increased despite continued fall in energy prices. They are concerned about weak economic statistics from the U.S.A. and they fear correction of the Fed policy. From our point of view, it became the reason of yesterday decrease of dollar against almost all currencies.  
    This day is the first of two days of Yellen’s speech in the Congress. It is the main news of this day. It is also able to become main driver for nearest days. Whether the Fed head will raise the issue of monetary policy in its speech and give hints of “softer” policy and that market is too optimistic about fourfold increase in rates this year or will try to convince everyone of continued high growth rates of American economy – it will be known only during the speech. By this moment US economy has reached contradictory results. The situation with unemployment and housing market looks quite good. Other sectors doesn’t show stable growth. Besides, stock market is under threat of collapse, and it is considerable source of pension funds. If statistics showed more confident growth, then there weren’t problems with monetary policy tightening. Under these conditions, the Fed has to act cautiously. Janet Yellen can give smooth answers to these questions. It is also a mystery how market players will perceive them.
    Considering local events, British pound will attract attention again. This time it is industrial production of the U.K. For long time the indicator has shown not good results, being in stagnation. Therefore, positive will give pound a chance to catch up the market. 
    Trade tactics:
    In EURUSD pair, formation middle-term ascending trend with new local maximums above 1.1700 is possible. Still, at this moment our technical indicators at short-term periods give signals of overbought, what indicates the possibility of correction. We have a desire to fix profit. We consider levels above 1.1340 as attractive for closure of long positions in the pair today. 
    Any opinions, advice, news, research, analyses, prices or any other information presented on this webpage is provided as general market commentary and does not constitute investment advice. "Vector Securities" shall not be liable for any loss, including loss of profit, which may arise directly or indirectly from the use of this information. 

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