Euro flat after Yellen comments

The euro is broadly unchanged versus the US dollar after Janet Yellen’s statement yesterday.

When Ms Yellen spoke in front of the Senate Banking Committee yesterday afternoon, she outlined her commitment to the stimulus package but also warned that the $85 billion-per-month bond buying will not last forever. This announcement had little impact on the currency pair. The euro has been trading within the $1.345 - $1.346 range for most of the morning, outside eurozone inflation numbers which were in line with expectation; there were no other major announcements.

In today’s eurozone finance ministers meeting, the group praised Ireland and Spain after the countries announced their intentions to leave their bailout programmes. The Dutch finance minister Jeroen Dijsselboem stated that both countries are good ‘examples of how a programme can work’, while suggesting that Greece needs to do more to remedy its fiscal problems.

The US will announce empire state manufacturing and industrial production at 1.30pm and 2.15pm respectively. If the reports are strong we could see the EUR/USD decline.

Spot FX EUR/USD chart

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