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Tension over Fed rate rise
The second day of questioning from the House Financial Services Committee and Ms Yellen saw a more pronounced conflict of interest between the two. The house frequently directed questions towards when the Fed would start raising interest rates to which Ms Yellen became increasingly adamant that it would not be unduly coerced into action. Ironically the Republican-led house has probably proven to the currency markets how reluctant the Fed is to go charging into an interest rate raising phase without a more convincing economic argument.
GBP/USD has now been pushed through the 100-day moving average and looks set to move up to the $1.5600 region. Breaking through this area will be considerably more difficult especially as the currency pair is moving into overbought territory.