Dollar preparing for Yellen’s speech

The beginning of the week was rather active. The US dollar made an attempt to strengthening against the basket of major currencies, but mostly currencies returned to the area of the opening of trading week.

Today, the US dollar can repeat its attempt to strengthen its position on the eve of tomorrow’s speech by the Chair of the Federal Reserve. Market participants are more likely to expect Janet Yellen to save his hawkish position. For that helps the data of the labor market in the US which were release last Friday. Despite the unemployment in the US increase to 4.4% it still remains below the target of 5%. NFP for May was revised upwards, and data for June support the US currency with 222K new vacancies. Average hourly earnings remained at an acceptable level of 2.5%.

Tomorrow, Mrs. Yellen can concentrate one’s attention on this news, noting positive changes in the economy, and, of course, stating about the need to continue normalizing monetary policy in the future.

Markets are counting for one more rise of interest rates by the Federal Reserve just in December. But positive rhetoric of Janet Yellen, confirmed by statistics, certainly will support the US dollar.