Yellen offers no new hints, headwinds from strong USD remain – ANZ

By FXStreet FXStreet (Delhi) – Research Team at ANZ, notes that there was nothing really new in Fed Chair Yellen’s testimony to the Joint Economic Committee relative to her remarks.

Key Quotes

“Headwinds from a strong USD and weak overseas demand remain, but 85% of the economy is running at a solid 3% clip. Caution is needed in raising rates off ZIRP but there also is a need to look forward and what the Fed doesn’t want to have to do is raise rates more aggressively in the future.”

“Data since October have shown further improvement in the labour market. As such, a hike in December seems as close to nailed on as you can get in financial markets, with markets assigning a 74% probability of a December Fed hike. The risk is now really around the pace and path. After today’s clear out in short EUR/USD positions, this will be a renewed focus for markets and should cap EUR/USD upside.”
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Source:: FX Street