Posted on: 31 March 2016, by: Pepperstone Support, category: Market Review
Global markets continued to digest Chair Yellen’s dovish message. This, along with month-end interest, led to the continuation of light USD selling on our platforms.
USD weakness was concentrated in the G10 commodity and EM bloc. Position adjustments then led to some recovery; this ways further helped by a correction in WTI following its failure to recover $40. Now $38.26.
The oil failure took some steam out of the US equity rally as well. US 10 yields rose from the 1.80/81% area to as high as 1.86% before the oil reversal. Now 1.8210%.
EURUSD sits a few pips above the key 1.1328 level. A close above there in NY on Wednesday would suggest further topside advances towards 1.1526 resistance.
On the data front, a strong ADP print (entirely driven by services) of 200k versus 195k had no impact thanks to Yellen.