Here’s my out-loud thinking on the Yellen Testimony to congress later…
So today we have the final part of Fed Yellen’s testimony to congress…
One thing stood out to me yesterday - and that is the hint that a small rate hike “wouldn’t be so bad”.
For some traders this opened up the floor to further desire for clarification…
On the one hand, she said that a rate hike isn’t out of the question… but with the word “small” added… does this mean that perhaps we won’t get the hike we all expect this year… who knows, we can only speculate on whether or not the Fed sees us with a decent hike and as to whether or not Yellen will give some further clarification to the board.
Either way, the USD seems to be struggling, especially against it’s counterparts such as the GBP, the JPY, the CAD and the AUD…
With the oil price slump being past its worse we can expect further strength on the CAD, AUD and even NZD against the USD (£) in upcoming weeks… but again, we can only speculate at this point…
One thing for sure right now though - that GU is moving upwards! Fueled by the Hawkish BOE minutes, and more Dovish than expected FOMC! But … we know everything can change with just a few words from a key player such as Yellen… it could be a roller coaster…
Source (Fed Yellen’s Testimony to Congress)