Alpesh Patel's NewsletterPro - Fed Chairwoman Janet Yellen’s testimony pressured the Dollar, further losses down the way?

Share On Facebook
share on Linkedin
© Alpesh Patel

Volatility seems to be back in force in most major currency pairs as the week draws to an end. We’ve had a slow start during the first sessions on the week but yesterday the geopolitical and economic developments produced significant swings in the major pairs we monitor daily.

The Euro disregarded the strong German Unemployment data and was under pressure during the morning session as tensions in Ukraine pose a risk for the European region. The Euro fell towards 1.3650 but it was later supported by Janet Yellen’s remarks that provided sufficient lift to drive the currency back above 1.3700 again. But what did the Fed Chairwoman say to her testimony yesterday that supported the Euro and other risk currencies?

Janet Yellen went a step further yesterday while testifying to the Senate and acknowledged the effect of the severe weather conditions to the domestic economy even though she reaffirmed her confidence in the tapering schedule. However, the fact that she said that the Fed needs to evaluate how much weather conditions have taken a toll on the economy and how much is purely attributed to a slowdown in the recovery was enough to hint investors on the possibility of a break from tapering or a slowdown in the pace of it.

The Pound had no UK-related news to trade on and the currency pair remained inside the tight range it has been trading in for the past few days. The Pound continues to receive mild support from the recent sale of Vodafone’s stake in Verizon Wireless and as Pounds continue to flow to the UK in the form of payments to the previous shareholders the pair remains above 1.6600.

The FTSE 100 started the day in the red but it gradually recovered to close above the 6,800 points. The UK index was lifted by Yellen’s comments that supported stock markets worldwide but from a technical standpoint FTSE’s short-term outlook remains negative and further losses could be expected.

Euro-zone inflation data and US Q4 GDP on the docket

The Economic Calendar today holds a number of important economic releases that have the potential to sustain the recent rise in volatility. Early in the morning the German Retails Sales are scheduled for release followed by the Euro-zone inflation data in the form of the Consumer Price Index and the Euro-zone Unemployment Rate. Figures are expected to print unchanged but the possibility of a surprise to the upside requires our attention.

Later in the day, a number of releases from the US could also provide friction in the markets. The Q4 GDP release from the US is the key focus here and figures are expected to print lower than last year. This release is a potential risk factor for the Dollar as a possible lower reading due to the weather conditions should pressure the Dollar lower.

Economic Calendar









German Retail Sales






Euro-zone Consumer Price Index






Euro-zone Unemployment Rate






Gross Domestic Product Q4






U. of Michigan Confidence









FTSE 100


This is the freely distributed Morning Brief section of the NewsletterPro – Forex Opportunities report, a subscription-based product.If you would like to receive the full version of the report along with specific trading suggestions, please subscribe by clicking here

Disclaimer Notice

Past performance is not indicative of future results. Trading forex, CFDs and equites carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts.

The information provided by should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. are merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. and/or its owners will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on does not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.



CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211204 18:54:07