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Focus back on Yellen

Markets remain in a state of nervousness and the higher beta currencies sold off yesterday with AUDUSD dipping just below the 0.7000 level overnight for the first time in two weeks. Investors continue to rely heavily on cues from central bankers and in a speech yesterday Mario Draghi kept his cards close to his chest saying it was too early to make a call on whether the ECB’s QE program will be intensified which gave the single currency a little support. Later today and a week on from the Fed’s decision to keep rates on hold Janet Yellen will be giving a speech at the University of Massachusetts. Designed to be a lecture on inflation and monetary policy, it is likely to be used as an opportunity by the Fed Chair to help clarify where they stand on the path of interest rates following the convoluted messages in last week’s FOMC press conference.

Ahead of that speech, due this evening at 22.00 UK time, there’s German IFO data which can often move the single currency and is expected to dip a little from August. EURUSD is just above the 1.1200 level this morning with near term resistance seen at 1.1220 and 1.1280. Also before Yellen’s speech there is US durable goods data, then new home sales.

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