• Yellen to testify before the Senate Banking Committee
  • US PPI could be a prelude ahead of the key data tomorrow
  • FED’s Brainard is scheduled to take the floor in the evening

Wednesday was likely to be the busiest day regarding numerous macroeconomic releases with the BoC’s decision being the top mover. Today’s calendar is slightly less abundant in data, albeit there are some noteworthy readings. First and foremost, Chairwoman Yellen is scheduled to testify once again. She was in the Congress yesterday, in turn she’ll pay a visit to the Senate Banking Committee.

1:30 pm BST – US PPI, weekly jobless claims: Although, PPI is not a big mover for the US dollar, it usually tends to move in the same direction as CPI. Taking into account that the latter will be revealed tomorrow, a producer price dynamic could be important as well. Consensuses point to 0% m/m and 1.9% y/y. In turn, core CPI is expected to come in at 2% y/y – all prints are for June. Moreover, there will be a weekly reading of US jobless claims. Admittedly, there is no a huge market mover given the current state of the economy, the labor market is still the brightest spot in the US, hence any substantially weaker then expected values could raise some concerns. Let us recall that wages growth remains relatively subdued, so the FED might still look for the tighter labor market which could ultimately encourage to lift wages. 

3:00 pm BST – Yellen to testify before the Senate Banking Committee: There is a second day of her semiannual hearings. There were little brief remarks yesterday, hence a reaction to the testimony will be muted as it will be the same. However, the Q&A session will differ obviously, so here we could look for more relevant commentaries which could potentially help the beleaguered greenback.

6:00 pm BST – FED’s Brainard speech: Her comments possibly sparked a short-term sell-off in the dollar two days ago as market’s participants, reading between the lines, saw a quite shallow path of interest rate hikes. Nonetheless, Chairwoman Yellen could have potentially settled down markets suggesting that rate hikes could be continued in upcoming years should the economic data remains sturdy. 

link do file download linkThe USDJPY is nearing a relevant support area which could ultimately encourage traders to open fresh longs if the support is defended. Source: xStation5