Yellen’s speech: Will the Fed chair present a more downbeat outlook for US? – BTMU

FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, notes that market remains wary of a possible disappointing picture of the US economy from Fed Chair Yellen’s speech.

Key Quotes

“The market is wary that Fed Chair Yellen will present a more downbeat outlook for the US economy following its disappointing start to the year. The interest market has already pushed back the expected timing of the first rate hike from the Fed until the end of the year which should help to limit any potential weakness for the US dollar potentially resulting from any more dovish comments from Fed Chair Yellen today. We expect Fed Chair Yellen to reiterate that the outlook for Fed policy remains dependent on incoming economic data from the US.”