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Yellen Fails To Deliver But Is The Dollar Dead?

Yellen Fails To Deliver But Is The Dollar Dead?

Finance
Shutterstock photoInvestors have been skeptical of the Fed's hawkishness in the days leading up to Janet Yellen's testimony and when she failed to sufficiently emphasize the improvements in the economy, the dollar U-turned as the bulls abandoned their trades quickly. USD/JPY dropped below 113 and EUR/USD rose to 1.1480.  However by the end of the North American trading session, USD/JPY moved back above 113 to settle above this key level and EUR/USD came off its highs after having dipped briefly below 1.14.  This leads investors to wonder if we've seen the end to the dollar's rally, at least for the time being.  To answer that question, we need to look at what Yellen said. In her prepared comments, she said additional gradual rate hikes will be needed over the next few years but rates won't