The US Dollar Index rose on Wednesday as the markets’ focus shifts to testimony from the chief of the Federal Reserve Bank, Janet Yellen. Twice yearly, Yellen testifies before various Congressional committees; this time, the line of questioning will be on US financial regulation, but in addition, the general economy of the US and the Fed’s rate outlook. Separately, two other key players at the Fed, Presidents Esther L. George and Loretta Mester, will be holding speeches today; both policymakers are deemed as hawks after their latest vote for a hike in interest rates.
As reported at 10:48 am (BST) in London, the US Dollar Index was trading at 95.555 .DXY, up 0.13%. The Index is viewed as a solid gauge of the greenback’s strength relative to its major peers. The USD/JPY was up 0.31% to trade at 100.722 Yen and not far from the session peak off 100.8100 Yen. The EUR/USD was flat at $1.1218l; earlier it had traded in a range of $1.1179 to $1.1225.
Eurozone Outlook in Question
The Euro has been under some recent pressure as concerns grow over the economic health of the Eurozone’s financial system. Part of the Euro’s decline is being attributed to a fall in the price of Deutsche Bank stock; Deutsche Bank is the largest lender in Germany. Mario Draghi, the president of the European Central Bank, is due to speak later today in Germany and markets will look to his rhetoric for hints on monetary policy and the outlook for the Eurozone. Traders will also watch for upcoming Eurozone data, including several confidence surveys and on Friday, preliminary inflation reports.