EUR/USD tumbles to 1-week low as Yellen speaks

FXStreet (Córdoba) - EUR/USD rose initially after FOMC statement but then reversed sharply, broke below 1.2380 and dropped to 1.2342, hitting the lowest price in a week. Greenback gained momentum with Yellen’s initial words and not only recovered post FOMC losses but also reached fresh highs.

The pair remains below 1.2400 holding a short term bearish tone but price action is still volatile as traders analyse the outlook of FED’s policy.

The euro lost ground against the pound and commodity currencies after the release but rose against the yen, that is plunging in the market.

Dec 17, 2014

Treasury yield curve steepens after Fed event

The yield curve in the US treasury market steepened after the Fed policy statement lowered interest rate estimates for 2015, while revising growth forecasts higher.

USD/JPY moves higher in the Fed aftermath

After a period of hesitation, USD/JPY climbed to fresh daily highs during Yellen speech after Fed Chair said being “patient” to normalize monetary policy should be understood as “at least a couple of meetings”. However, Yellen emphasized there is not a preset or predetermined timing and all will remain data dependant.