EUR/USD finishes round trip
The euro has now completely recovered from the blip that peaked as Yellen delivered her testimony to Congress.
It's finished a roundtrip to 1.1161 and then back to 1.1290 in another day of volatile but non-directional trading.
It's all about risk sentiment at the moment. Hikes matter less at the moment; the market wants to see which central banks get it. Instead, Yellen seemed distant and reluctant to back off her hawkish rhetoric.
At the same time, a strong US 10-year auction showed that bonds are still in demand.
Earlier, I wrote about the case for euro longs at 1.1245.
"I don't think Yellen did enough for stocks and that will hurt risk trades, something that's benefitted the euro over the past two months."
Last at 1.1290.
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