Yesterday, Ms. Yellen said that the Federal Reserve will likely raise interest rates later this year, but it will not occur after the FOMC next meeting in April. She also added that the decision will depend on the data. In response to this announcement the USD Index reversed and dropped below the barrier of 100, accelerating further declines. As a result, the greenback hit an intraday low of 94.77 against the basket of major currencies. What impact did this correction have on their short-term picture?

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Earlier today, the U.K. Office for National Statistics showed that the rate of unemployment was unchanged at 5.7% in the fourth quarter of 2014, missing analysts’ expectations. Additionally, the claimant count decreased by 31,000 in the previous month, also disappointing expectations. Thanks to these bearish numbers GBP/USD declined sharply, slipping below 1.4700. How low could the exchange rate go in the coming days?

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Yesterday’s data showed that U.S. industrial production increased by 0.1% in the previous month, disappointing expectations for a 0.2% gain. Additionally, manufacturing activity growth in New York State slowed in March for a second straight month, which together pushed the greenback lower. Earlier today, the USD Index dropped below the psychologically important barrier of 100, invalidating earlier breakout. What impact did this decline have on the USD/CAD pair?

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Earlier today, the U.S. dollar moved lower and approached the barrier of 100 as Friday’s disappointing data encouraged investors to take profits from the recent rally to almost 12 years high against the basket of major currencies. As a result, USD/CHF reversed and erased some gains. Is this a shallow correction or maybe the beginning of a trend reversal?

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Since the beginning of the week the USD Index increased from 97.31 to 100.29, hitting a fresh almost 15-year high against the basket of major currencies. Although today’s data showed that producer prices fell 0.5% last month (missing expectations for a 0.3% gain) and core producer prices (without food, energy and trade) dropped by 0.5% in February (missing forecasts of a 0.1% rise), while the University of Michigan’s consumer sentiment index fell to 91.2 in March, the index still remains above the psychologically important level of 100. How this week’s rally influenced the short-term pictures of major currency pairs?

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