Investors Turn Optimistic after Yellen’s Comments

Yellen Ignite Market Rally

Federal Reserve Chairwoman Janet Yellen turned in an effective performance before Congress yesterday. The Fed Chairwoman will speak in front of the Senate again today. Yellen remarked the U.S central bank has no intention of raising interest rates in a hasty manner as long as inflation remains below standard metrics. Investors used the testimony in Washington as a lynchpin to take Wall Street higher. The Dow Jones Industrials finished above the 21,500 level yesterday.

Asian Markets Takes Part in Rally

China’s Trade Balance numbers have beaten their estimates. Import and export figures both improved. The news is good for China, and also suggests the global economy is improving. The Shanghai Shenzhen composite is higher this morning as the combination of good data from China and the U.S Fed’s Janet Yellen’s has had a positive effect. The Yen has also strengthened against the U.S Dollar and the 112.75 support level has come into view.

Euro to Offer Range Trading

The Euro and Pound range traded against the U.S Dollar on Wednesday. The Euro continues to offer traders an opportunity to test values between the 1.14 and 1.15 levels. The Bank of England’s Credit Conditions Survey will be released today, and inflation data from France and Germany has already been released. French President Macron and U.S President Trump will have dinner tonight in Paris and be together tomorrow during Bastille Day celebrations in France.          

Gold Gains, Sell-Off Remains in Mind

Gold has seen a calm period of trading the past couple of days. However, last week’s sell off remains in the minds of traders who may feel tempted to trade the commodity, but remain on the sidelines. Gold has gained this week over ten U.S Dollars an ounce this week.

Yaron Mazor is a senior analyst at SuperTraderTV.

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