GBP/USD At New Highs On Yellen Comments
TFI Markets | Apr 18, 2014 03:02AM ET
The US dollar was trading lower across the board in the morning as Federal Reserve Chair Yellen said yesterday that low interest rates are needed to support the economy even though such a policy stand might hurt the currency. Gbp/usd rose to new highs since 2009, reaching 1.6840 as traders continue to buy the currency on expectations that the Bank of England will hike rates in the first quarter of 2015.
However the dollar recovered some losses in the afternoon after better than expected US data; unemployment claims came in at 304k from 316k while the Philly Fed manufacturing index was much higher at 16.6 from 9.6.
AUDUSD 1h chart
Price consolidates but a break and close outside this area might accelerate losses.
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