Dollar Sees Steady Gains Following Yellen Testimony

EUR/USD fell 34 focuses to exchange at 1.3534 after affirmation from Janet Yellen backed the greenback. Yellen guaranteed US officials that the US was doubtlessly in full recuperation mode. The dollar was higher against significant opponents Wednesday, marginally enlarging its overnight addition after remarks by the leader of the Federal Reserve, yet thinking that it not able to development much further without crisp signs.

GBP/USD eased by 19 points to trade at 1.7125 as the dollar gained. The US dollar gained steadily on testimony by Fed Chairwoman Yellen. The pound dipped on Wednesday after British wage data fell short of forecasts, failing to provide more evidence of a pickup in demand-led pressure on prices following a jump in inflation last month.

AUD/USD eased by 28 points to trade at 0.9342 after strong Chinese data did not support the currency. The AUD has been weighed down by comments from the RBA earlier this week saying that the currency was overvalued. As usual, the RBA policy meeting minutes referred to the Australia Dollar as overvalued, especially now with commodity prices at these low levels.

USD/JPY gained 7 points on the stronger US dollar which climbed after Janet Yellen’s testimony before US lawmakers. Traders are also waiting for the Bank of Japan monthly report after the BoJ decided to hold rates and policy at its meeting this week. Fed Chair Yellen noted in her testimony that the recovery of U.S. economy is not complete and unemployment levels remain high

Gold remained under 1300 per ounce trading at 1298.20 at this writing recovering $1.10 since yesterday after gold suffered a drastic decline on Tuesday. Gold had fallen by more than 1% Tuesday, to $1,292.20 an ounce, as fears faded over Portugal’s banking system and amid expectations for an earlier-than-expected hike in U.S. interest rates. Since gold yields no interest and costs money to store, high interest rates tend to dent its appeal to investors