FX.co ★ Demand for the U.S. Dollar Returns

In the morning, data on industrial production in euro zone was released, which did not particularly help the European currency losing its position against the dollar before Fed Chairman Janet Yellen's speech.

According to the report of the EU statistics agency Eurostat, eurozone industrial production rose by 1.3% this May compared with the previous month and by

As noted in the report, the eurozone's economic recovery in the second quarter of this year contributed to a good growth rate, and a significant increase in the production of capital goods had the greatest support for the indicator.

The demand for the US dollar against the European currency rose after the speech of Fed Chairman Janet Yellen, who said that the main objective now is to reach the target inflation of 2% and an increase in GDP growth rate.

With regards to monetary policy and the future terms of interest rate increase, Yellen said that she did not make such decisions in advance. In her view, the U.S. Federal Reserve should gradually hike its key interest rate over the next several years in line with economic growth.

The Fed chairman also noted that currently the Federal Open Market Committee expects a reduction of the balance sheet this year, if the economy will meet expectations.

The British pound rose against the dollar after it was reported that unemployment in the UK

declined in over the last three months, reaching its lowest level in the last 40 years.

According to the National Bureau of Statistics, from March to May 2017, unemployment fell to 4.5%, while the number of unemployed fell by 64, 000 and the number of employees has reached a record high.

However, if you look at the report on real wage growth, it is clear that significant gains in the labor market contributed to a decline in the indicator.