Yellen’s speach then next big event of today at 3pm (GMT)

We have the Federal Reserve Chair Jannet Yellen testifying on the economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC at 3pm (GMT).

Up first is a prepared statement followed by the question and answer session. The market will be focusing on Yellen’s Rhetoric and will be looking for hints about the current tapering stance on the back of the misses in US data we have seen of late.

Expect much volatility as traders try to take a position, we saw a large move higher in the dollar yesterday with EURUSD breaking out if its range and overnight news for the AUDUSD sent it tumbling down to session lows of 0.8903, GBPUSD had a look at the 1.66 but bids at 1.6615 capped the fall.

Stronger US data if only slighly has giving USDJPY a push from session lows at 101.72 with 102.60 resistance the main focus should the rhetoric be more hawkish.

Try not to get sucked in to the initial move as patience is often the best trade to make during this periods of volatility.