US Dollar Remained Weak: Global Uncertainty Justifies Slower Path of Rate
US dollar has remained weak in the Asian trading session following yesterday’s speech from Fed Chair Yellen, which signalled more caution over rate hikes in the near-term. “Given the risks to the outlook, I consider it appropriate for the committee to proceed cautiously in adjusting policy,” Yellen said. Besides, she adds: “The major thing that’s changed between December and March that affects the baseline outlook is a slightly weaker projected pace of global growth”.
Regarding the release of final print of the composite Euro-zone GDP for Q1 2016, the EURUSD pair has tested session high level of 1.1370. Ahead of the GDP print, the pair saw some bullish momentum after the release of German Industrial Production data that showed in-line with estimated growth of 0.8% (mom).
In an interview with Bloomberg, a former Bank of Japan (BOJ) executive, Kazuo Momma, noted that the bank should drop its two-year timeframe for inflation to avoid having to take more drastic action to reach the distant goal. Germany Industrial Production (YoY): 1.2% (April) vs 0.3%.
Get market updates on your email by subscribing to T1 MarketScope weekly newsletter