The Kiwi was the best performer of the G10 currencies overnight as the market further digests Fed Chair Yellen's comments from early Thursday morning. The pound rose 0.3% to $1.2880 as the European session was about to close.
Yelle noted the economy added 180,000 jobs per month during the first half of this year - almost the same pace as last year's first half. Unemployment was 4.4 percent in June and employers have added 187,000 jobs a month on average over the past 12 months.
Senators Graham and Cassidy Announce Their Own State-Based Obamacare Alternative Bill
But it remains to be seen whether he can satisfy moderates and hard-line conservatives in his party who have voiced opposition. But the Senate still has a full workload in changing its health care bill enough to get 50 "yes" votes.
In the United Kingdom, divergence of opinions on the country's monetary policy is remerging as Bank of England member Ian McCafferty expressed a stronger hawkish take.
Looking ahead, Yellen expects a strong economy. In short, it doesn't seem like she is convinced that inflation will rise high enough to make hiking interest rates an urgent priority (paywall). She said job gains were above the bank's estimate and that the economy picked up in the second quarter on a rebound in household spending and stronger overseas demand helping U.S. manufacturers.
Given current estimates, the federal funds rate "would not have to rise all that much further" to reach a neutral level that neither encourages nor discourages economic activity, Yellen said in her prepared testimony.
Murray Upset, Djokovic Retirement Causes Chaos; Federer Cruising at Wimbledon
The Swiss star reached the Wimbledon semi-finals for the 12th time on Wednesday with a 6-4, 6-2, 7-6 (7/4) win over Milos Raonic . Querrey's path to the Finals won't get any easier - he'll play the victor of Marin Cilic (7) and Gilles Muller (16) next.
The Bank of Canada's increase is the first by a G10 central bank outside the Fed since the Reserve Bank of New Zealand raised rates three years ago.
"The Fed said it would alter its plan if weak inflation persisted so her comments were taken as being dovish in nature rather than hawkish", said James McGlew, executive director of corporate stock broking for Argonaut in Perth. Like many central banks, the Fed dramatically increased the size of its balance sheet as a result of the financial crisis, embarking on a quantitative easing programme.
"Provided the economy evolves broadly as anticipated, it will likely begin to implement the program this year", said Yellen in her testimony referring to the balance sheet reduction. Several officials believe the Fed likely will maintain a portfolio to exceed $2 trillion. Later, when asked what she would say if Mr. Trump offered her another term, she said, "It is certainly something that I would discuss with the president, obviously".
Chinese Nobel Peace laureate Liu Xiaobo dies at 61
Although numerous Charter 08 signers were interrogated, only Liu was arrested and charged with trying to overthrow the government. Liu's peaceful activism and biting criticism of one-party rule meant he had spent nearly a quarter of his life behind bars.
"It is premature to conclude the underlying inflation trend is falling well short of 2 percent", Yellen told the Senate Banking Committee on Thursday in Washington.
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