Yesterday’s data, which received from the US, disappointed the markets, being absolutely everything in the red zone. Retail sales decreased by 0.3%, consumer price index declined to 1.9%. After such news, the US dollar sharply weakened against the basket of major currencies, and market participants began to doubt that the Federal Reserve will announce positive outlooks and will continue the tightening of monetary policy.
But at a press conference Janet Yellen confirmed that the position of the Federal Reserve remains unchanged. Slowdown in inflation, according to the American regulator is just a temporary phenomenon, and economic growth begins to improve. Was noted stability of the labor market, and was raised the forecast for GDP. Besides that, Mrs. Yellen shared the plans of the Federal Reserve to reduce the balance sheet. Respectively, the Federal Reserve remains plans to raise rate.
Such hawkish rhetoric Janet Yellen led that the dollar regained its lost positions, but further strengthening not took place. Market participants still doubt the words of the US regulator, because statistics show other situation.
Therefore, so that more traders will return to the US dollar purchases, it is necessary the appearance of positive statistics from the US, which will confirm the words of Janet Yellen.