Upbeat tone expected in Yellen’s press conference

June 17, 2015

In the opinion of analysts at Danske Bank, today’s press conference by Chairwoman J.Yellen could be on the hawkish side.

Key Quotes

“In terms of the statement we expect the tone to be slightly more upbeat than in April given the latest more positive run of US data but we do not expect any major changes in the forward-looking part of the statement”.

“More interesting will be Chair Yellen’s comments at the following press conference. Key will be the FOMC view on how much of the Q1 economic weakness is temporary and how this, combined with the most recent more positive data, has affected its economic outlook”.

“While Yellen and other key FOMC members have repeatedly said that they believe that weakness was in part due to transitory factors, others such as NY Fed President Dudley has sounded more worried”.

“However, the strong May employment report, solid May retail sales and preliminary June consumer confidence on top of signs that wage inflation is moving higher and core inflation is stabilising, should have improved the FOMC’s confidence in the outlook”.

“Hence, at the current juncture we believe a majority of the voting members of the FOMC prefer a first rate hike at the September FOMC meeting”.

“Yellen’s comments at the press conference should reflect this increased confidence. While the April FOMC minutes showed that there was no backing for pre-announcing a coming rate hike, we do believe that Yellen will strike a more positive tone and state that if the recent improvement continues, come September it will likely be ‘reasonably confident that inflation will move back to its 2% objective in the medium term’. 

Publication source
OctaFX information  OctaFX reviews

September 27, 2016
The US election beta
Having obsessed about an event that did not happen this month (a Fed tightening), markets now turn to obsessing about an event that will happen, namely a change of US President...
September 27, 2016
Oil prices are moving towards stabilisation
The oil prices start the week on an upbeat note as the informal OPEC meeting may end with a positive agreement for the oil market, which could resolve in production kerbs and freeze said the Algeria’s Energy Minister on Sunday...
September 27, 2016
US politics cast shadow over NZD
It's been an interesting start to the week as politics is looking likely to take centre stage amongst a market which is becoming increasingly worried over the result of the US presidential election...

XM Rating
OANDA Rating
Larson&Holz IT Ltd Rating
FOREX.com Rating
HYCM Rating
Grand Capital Rating

TropicalTrade Rating
IQ Option Rating
365BinaryOption Rating
Porter Finance Rating
OptionFair Rating
Banc De Binary Rating