Dovish comments from Yellen. EURUSD gains slightly 💵

After today's US inflation reading, US Treasury Secretary Janet Yellen shared some rather dovish comments with the market. The dollar is trading down today, with the USDIDX index losing 0.25% and the EURUSD gaining 0.29% although the rise is on fairly low volume, putting a question mark over sentiment on the major currency pair ahead of Powell's speech tomorrow (8:30 pm).

Yellen comments

• I see no reason why inflation shouldn't come down to the Fed's target. Inflation is coming down meaningfully.
• Rising real rates may impact the Fed's decision on the rate path.
• There's no evidence that inflation is becoming ingrained, or that there is a wage price spiral.
• The US economy on the path to a soft landing.
• It is not necessary to have high unemployment to lower inflation.
• Wages are rising at a healthy pace, the labor market remains strong, but it is cooling.
• There's no reason to believe that the last mile will be especially difficult.
• Wage increases continuing at a healthy pace.
• The labor market remains strong, but is cooling.
• Prices are rising at a much slower rate than before, but the level of prices, including rents, are still higher.

Source: xStation5