Fed Chair Yellen’s Speech in the Limelight Today – Deutsche Bank
Research Team at Deutsche Bank, suggests that we are due to hear from Fed Chair Yellen, speaking at the Economic Club of New York (scheduled for 4.20pm GMT).
“The speech looks set to take on slightly more importance than normal in light of what’s been a chorus of relatively hawkish Fedspeak over the past ten days or so. In that time we’ve heard Bullard, Lacker, Lockhart and Williams all hint at the possibility of a hike as soon as April or June, with Bullard the latest to suggest that ‘the Fed forecasts suggest that the next hike may not be far off’.
This contrasts to the overall dovish view that we got from the Fed at the FOMC meeting earlier this month. Despite the comments in recent days, our US economists are still of the view that they doubt Yellen will sound overtly hawkish this afternoon and while she may reiterate that April remains a ‘live meeting’, they doubt that she will send a strong hike signal for next month.
Markets are still yet to be convinced that the Fed will move next quarter, with the odds of an April hike a lowly 6% and a June hike just 38%, which is more or less where it has been since the FOMC meeting.”
(Market News Provided by FXstreet)