Fed: On the Wings of a Dove - Investec
Research Team at Investec, suggests that despite hawkish comments from various Federal Reserve members since the decidedly dovish FOMC statement earlier this month, Fed Chair Janet Yellen stuck to her dovish tone from the central bank meeting in a speech yesterday, sending the US Dollar lower across the board.
Key Quotes
“Highlights included Yellen saying caution in raising rates is 'especially warranted' and that the Fed has plenty of room for stimulus if needed. Hardly the talk expected for an April rate rise.
Conspiracy theorists point to a so-called Shanghai Accord, named after the 1980s Plaza Accord that saw major economies agree to weaken the Dollar from multi-year highs. Since the G20 summit held in China in February, central bank chiefs have verbally helped weaken the US Dollar, even in economies like Japan and Europe where easing is taking place, while Fed chief Janet Yellen tows a dovish line while tightening policy. Any truth in there we wonder?”
(Market News Provided by FXstreet)
