28 Jul 2014
Hawkish tone expected from Yellen - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, expects Yellen to emphasize the solid performance of the US labour market.
Key Quotes
"The Fed may acknowledge the recent stronger than expected labour market improvement at the upcoming FOMC meeting justifying the decision to taper QE by a further USD10 billion. With QE set to end in October, the Fed will soon have to provide more details over the next stage of their exit strategy providing support for the US dollar."
"Fed Chair Yellen has already stated at the semi-annual testimony to Congress that should the labour market continue to strengthen more than expected it could prompt sooner and more rapid rate hikes. The release of the latest US GDP report for Q2 will also be in focus."
"The report is expected tor reveal that the US economy rebounded after the unexpectedly sharp contraction in Q1. However, the economy is likely to have still contracted modestly during the first half of this year. The US economy is expected to record stronger growth in the second half of this year which should provide a more supportive environment for the US dollar to extend its upward momentum."
Key Quotes
"The Fed may acknowledge the recent stronger than expected labour market improvement at the upcoming FOMC meeting justifying the decision to taper QE by a further USD10 billion. With QE set to end in October, the Fed will soon have to provide more details over the next stage of their exit strategy providing support for the US dollar."
"Fed Chair Yellen has already stated at the semi-annual testimony to Congress that should the labour market continue to strengthen more than expected it could prompt sooner and more rapid rate hikes. The release of the latest US GDP report for Q2 will also be in focus."
"The report is expected tor reveal that the US economy rebounded after the unexpectedly sharp contraction in Q1. However, the economy is likely to have still contracted modestly during the first half of this year. The US economy is expected to record stronger growth in the second half of this year which should provide a more supportive environment for the US dollar to extend its upward momentum."