The dollar has decided to take a break and is trading lower against its major rivals. Judging by the current dynamics of the American currency, at this stage the market played a recent "hawk" messages from Fed's and switched to upcoming events. Tomorrow the US will publish a report on GDP in the first quarter, and later will be the speech of the Fed's governor Janet Yellen. To some extent, today's dollar sales are related to the expectations of these events, and with particular caution players are preparing for the speech of the head of the American regulator.
J. Yellen, renowned for her caution and commitment to the "pigeon" rhetoric, can partially reverse the recently resurgent optimism of market participants in relation to the imminent rate hike. If the head of the bank will continue to adhere to such a tone, the dollar could make a downward correction against other major currencies. In anticipation of Yellen's speach, the dollar can demonstrate a consolidation with a downward bias.
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