FXStreet (Edinburgh) – Strategists at TD Securities see the upcoming Testimony by Chairwoman J.Yellen to be supportive of the US dollar.
Key Quotes
“On which note, on Wednesday Yellen’s Semi-annual Testimony on Capitol Hill will provide guidance to the markets on the near-term outlook for monetary policy, which we expect will be USD-positive”.
“Last Friday she gave us a foretaste of her thinking when she said that, based on her outlook, it should be appropriate to take the first step to raise the Fed funds rate later this year”.
“In her testimony we expect her to emphasize the recent progress in domestic economic activity, reinforcing the Fed’s cautious optimism about the economic outlook”.
“But she is likely to the moderate the relatively upbeat tone with warnings about global risks such as China”.
(Market News Provided by FXstreet)