Posted on: 07 June 2016, by: Pepperstone Support, category: Market Review
The USD tried to rally on initial headlines from Chair Yellen’s speech Monday but has failed to sustain gains.
As noted, initial headlines sparked a short-lived USD rally. EURUSD, one of the biggest movers on remarks, took a quick tip from the 1.1360 area to sub 1.1330. This was understandable as remarks appeared hawkish on the surface:
YELLEN SAYS SHE SEES ECONOMIC POSITIVES OUTWEIGHING NEGATIVES
YELLEN: CAREFUL NOT TO READ TOO MUCH INTO ONE MONTH'S DATA
In the reversal, it could not sustain gains above 1.1390 so has returned to its starting position around 1.1360/70.
Brexit/Bremain uncertainty was also cited on Monday as a source of volatility. Gold vols even moved sharply higher on this.
CAD was the best performing currency against the USD on Monday.