Traders Turn Tentative Before Janet Yellen Speaks in Washington

Federal Reserve Chairwoman Janet Yellen’s testimony in Washington will be the highlight of day for investors. Global equities have been cautious and forex has seen range trading develop. Crude Oil Inventories will come from the States also today.

Yellen Will Impact Markets Today and Tomorrow

Federal Reserve Chairwoman Janet Yellen will begin her testimony in Washington today before Congress. Investors have taken a cautious tone before the Yellen’s remarks. Interest rates and asset holdings via the U.S central bank will be the biggest talking points. The U.S Dollar has been range trading this morning ahead of the event. Wall Street was mixed yesterday. While the Dow Jones Industrials and NASDAQ gained, the S&P lost ground. Janet Yellen’s testimony will continue tomorrow before the Senate and continue to impact the equity and forex markets globally.

Tertiary Industry Activity Report Improves

Asian markets turned negative today, except for the Hang Seng which did put in gains. The Nikkei and Topix declines were slight, but both exchanges remain positive over the last month of trading. The Tertiary Industry Activity report from Japan today turned in a result of minus -0.1%. Yes, the data was negative mathematically, but the outcome was better than expected. The Yen has remained in a consolidated range against the U.S Dollar.

Average Earnings Index Meet Estimate in U.K.

The Euro enjoyed a solid day of trading on Tuesday as it gained well against the U.S Dollar. Interestingly this occurred, as the Pound in fact sank against the U.S Dollar. However, in early trading this morning the Euro has seen some pressure. The U.K’s Average Earning Index figure met expectations with an outcome of 1.8%, showing inflation remains muted in Britain. The Pound’s declines against the U.S Dollar yesterday suggests investors are dissatisfied with the U.K government leadership. European equities have put in slight gains this morning.

Volatility Likely in Crude Oil Today

Crude Oil Inventories data will come from the States today. The commodity has risen in value early this week coming off low support ratios. The outcome of the report could fuel speculative fever for Crude Oil, but the energy will remain volatile even if there are no surprises from today’s report from the States. Traders need to remain vigilant with Crude Oil and its range will be tested.

Yaron Mazor is a senior analyst at SuperTraderTV.

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