|02:35 EDT||FX Update: The dollar has remained firm |
FX Update: The dollar has remained firm in the wake of Fed' Yellen's slightly less dovish tone during her testimony yesterday. EUR-USD edged out a new low of 1.3556, which is the lowest rate seen since Jun-18. The T-note over Bund yield differential has remained steady around 133 bp, which is down about 5 bp from last week's major-cycle peak. Near expectations China GDP and production didn't cast much impact in Asian markets today. Cable drifted slightly lower, to 1.7130, after logging a new six-year peak yesterday at 1.7192 in the wake of perky U.K. inflation data. USD-JPY eked out a one-week high 101.76. The BoJ monthly report said that the moderate recovery should continue, while the central bank's estimate of the output gap was positive for the first time since Q2 2008, at 0.6%. Nomura said in a note to clients that it now expects additional stimulus from the BoJ in April 2015 rather than October this year. AUD-USD fell to within one pip of the Jul-3 low in making 0.9329, breaching the 50-day moving average on route. RBA's Edwards repeated the central bank's contention that the Aussie dollar is overvalued.