Chair of the Board of Governors of the U.S. Federal Reserve System, Janet Yellen will deliver her semi-annual testimony before Congress on the economic outlook and monetary policy at 14:00 GMT today. Markets will be closely watching for any comments from Yellen on inflation, given that price pressures from the U.S. Central Bank continue to persists. Political concerns in the U.S. could impact trend of the dollar today. Meanwhile, the Australian dollar rallied on firmer commodity prices in today’s market. The U.S. Crude Oil Inventories report for this week is due at 14:30 GMT.
U.K. will be releasing its Average Earnings Index +Bonus for May and its Claimant Count Change for June, both at 08:30 GMT. Facebook, the social networking giant announced that it is planning to expand its home tab ads in its Messenger mobile app on Tuesday. Facebook began testing Messenger homepage ads in January in Australia and Thailand. If a user responds to an ad, it will take him or her to another conversation inside the chat app.
The Bank of Canada will communicate its interest rate decision and its monetary policy report, both due at 14:00 GMT today, and it is highly recommended to follow these as markets receive hawkish signals from policymakers. Later, the Bank of Canada Governor Stephen Poloz will deliver a speech at 15:15 GMT and his comments could influence the Canadian dollar on the forex market.
The EUR/GBP pair followed a much volatile trend on Monday, and on Tuesday early trading hours. It was seen picking up heights as from 11:00 UTC yesterday to reach a record high at the 0.89313 level by 18:00 UTC. It was last quoted up at the 0.89352 level around 04:00 UTC today, it may continue to fluctuate through the day. Use the FX/CFD tool to trade this one today.
This asset recorded a huge set of momentary jumps on Tuesday as it traded at the 1.13942 level around 12:00 UTC to close this uptrend at night by 18:00 UTC at the 1.14764 level. The EUR/USD pair managed to close yesterday’s session safely above the Ichimoku Cloud indicator to continue its strong bullish run against the U.S. dollar. Events due for today could uplift trend of this asset further on the forex market.
A look at the GBP/JPY pair depicts a downtrend since yesterday’s session, it tumbled as from the 147.546 level around 11:00 UTC to reach the 146.407 level by 16:00 UTC and ended its session bearish. It started off today’s session bearishly at 00:00 UTC at 146.264 yen to close this downtrend by 03:00 UTC at 145.703 yen. It may continue to fall through the day as it is seen hovering below the Ichimoku Cloud indicator.
It is advisable to trade on the U.S. dollar, with currency pairs such as the EUR/USD, GBP/USD, AUD/USD and Wall Street indices as Yellen is set to testify on monetary issues later during the day. The BRENT CRUDE OIL-APR16 and the Gold vs Oil pair should not be missed.
Consider trading on assets such as the EUR/GBP, GBP/JPY, and the FTSE 100 in regards to the U.K. events. Investors should not overlook Facebook stocks and the Nasdaq index as these could be affected by the announcement made yesterday.
Trade the USD/CAD, AUD/CAD and the EUR/CAD are available for trade on the Limits trading tool.