Fed vice-chair Janet Yellen pushed back against the hawks on the FOMC last night, saying the Fed could continue support past the present 2014 time frame. Here compatriot, NY’s Dudley also kept the door to QE wide open, while also acknowledging some recent economic improvement.
The bottom-line impact has been for traders to sell greenbacks and embrace risk, assuming the Fed will keep the wind at their backs for the foreseeable future.
EUR/USD managed to absorb central bank offers in the 1.3150/60 region and has pressed on to 1.3177 highs so far.
Stops are seen above the 1.3180 area in modest size near-term while offers are seen toward 1.3200 near-term.
