EUR/USD unable to recover, consolidates at 5-week lows

The US dollar is consolidating post-Yellen gains in the market while equity indexes in Wall Street are up, headed toward another record high close.  US bond yields area consolidating near daily highs. 

EUR/USD bottomed at 1.0560, the lowest level since January 12. From the low, the pair failed to recover ground. It rose to 1.0580 and now is back, slightly above the lows, consolidating a daily loss of around 30 pips. 

EUR weaker, USD stronger

The euro was rising against the US dollar before the initial testimony of Janet Yellen before the Senate Banking Committee. The message from Yellen, appeared to analysts, more hawkish than market expectations and the US dollar jumped, pushing EUR/USD below 1.0600. 

EUR/USD is headed toward the lowest close in a month as it continues to move within a bearish short-term channel. 

After Yellen’s speech, the euro surprisingly weakened. EUR/GBP reversed and earased most of its gains while EUR/USD dropped back below 1.0650 to test the daily low. On the opposite direction, the US dollar index jumped to 101.37, the strongest in three weeks.