Session Recap: Yellen pushes the Dollar; Espirito Santo drags the Euro

By FXstreet.com | July 15, 2014 AAA

FXStreet (San Francisco) - The US Dollar traded positive on Tuesday as Fed's Janeth Yellen affirmed that she is not happy enough with the economic recovery. Yellen was overall dovish on US economy as well as she commented that the Fed's policy will remain accommodative until economic headwinds overcome.

She thinks the recovery isn't enough as the Fed hasn't meeting inflation and labor mandates; however, Yellen affirmed that “increase in Federal Funds rates would likely occur sooner and be more rapid if labor market continues to improve.”

In this framework, the dollar traded higher against it major competitors including the resilient Euro that was hurt by the talks on Espirito Santo Group’s holding company Rioforte would be preparing to file for bankruptcy.

According to a Reuters source, Rioforte is preparing the stuff to file for creditor protection in Luxembourg.

The EUR/USD is closing at nearly 1-month low at 1.3560 after performing its third negative day in th elast fourth. "Technically, the hourly chart shows price accelerated south below its moving averages, while indicators continue heading south near oversold levels, after a limited upward correction," Valeria Bednarik from FXStreet affirms. "In the 4 hours chart the pair presents a strong downward momentum which support some continued slide towards immediate short term support at 1.3535. If below, the key level to watch stands at 1.3476, this year low."

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