Several Fed members were speaking overnight, but there was not much of a reaction in FX. Traders are waiting for Fed Chair Yellen’s speech at 15:00 BST (London time) today and whether she will provide any hints about a rate hike this year.
Overall, the US Dollar weakened slightly overnight, with the New Zealand Dollar the best performing currency. NZD/USD rose from 0.7290 to 0.7315 and similar price action was seen in AUD/USD, which made it from 0.7600 to 0.7635. USD/CAD declined from 1.2940 to 1.2905, party under pressure due to the rise in Oil prices yesterday.
Flows were light in the other major pairs as well. EUR/USD traded 1.1278-93 range, while GBP/USD consolidated between 1.3185 and 1.3215. USD/JPY came under pressure ahead of the Tokyo open and fell from 100.60 to 100.40, but was able to bounce from there and settled around 100.50 for the rest of the session.
Aside from the speech by Fed Chair Yellen, there will be also a fair amount of data releases, most notably UK and US GDP. Please see the calendar below for further details.
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