Although the U.S. Commerce Department showed that U.S. consumer prices dropped 0.7% in the previous month (missing expectations for a decline of 0.6%), the data also showed that durable goods orders increased by 2.8% (above expectations for a 1.7% gain), core durable goods orders without volatile transportation items moved up 0.3% and core consumer prices without food and energy costs increased by 0.2% in January. Thanks to these positive numbers, the USD Index moved higher and increased above 95, erasing the recent losses. As a result, AUD/USD moved sharply lower, invalidating earlier breakout. What does it mean for the exchange rate?

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Yesterday, Federal Reserve Chair Janet Yellen indicated during her testimony to the Senate Banking Committee that the bank would no hurry to raise interest rates for “at least the next couple of FOMC meetings”. This news pushed the U.S. dollar lower against its Canadian counterpart, which resulted in another breakdown under the long-term support/resistance line. Third time lucky?

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Although GBP/USD moved lower at the end of the previous week, the exchange rate rebounded sharply yesterday, erasing earlier losses and approaching the Feb high. Will we see the pair above 1.5500 in the coming days?

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Although USD Index moved higher after upbeat manufacturing data, the index reversed later in the day, which moved away the USD/CHF pair from its major resistance. Does it mean that the rally is over?

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Earlier today, preliminary data showed that the U.S. manufacturing PMI rose to 54.3 in February from 53.9 in the previous month, beating expectations for a fall to 53.6. Thanks to this upbeat report USD Index moved higher and approached the level of 95. Did this increase change the major currency pairs’ outlooks?

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