FXStreet (Córdoba) - Even though the EUR/USD initially hesitated on which way to take, it finally turned south and printed a marginal new YTD low as Fed Chair Yellen begins her prepared speech in Jackson Hole.
The EUR/USD rose to the 1.3285 area before turning lower, accelerating to fresh lows amid dovish comments from Yellen. She said the FOMC sees significant labor slack and that slower progress on Fed goals may delay rate increase.
Fed Chair offered no surprises and despite sounding quite dovish, the USD is rising across the board, having dragged the EUR/USD to match its last week low of 1.3237 so far.
"Yellen gave the market exactly what they expected. She was quite dovish and made few illusions to the timing of any future rate hikes. Now that the event is out of the way, the trend that has been in place is reasserting itself", said Jamie Coleman, Editor at FXBeat. "As we've said repeatedly, doves being dovish is not news...Markets expected Yellen to be dovish so the dollar is not suffering".