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

December 7, 2016
Will ECB support Italy?
The yield of the Italian sovereign debt fell on Tuesday as the focus moved to the political uncertainty on the market. After Renzi’s crash on the weekend and the expectations of the ECB measures to deal with the possible fallout of the financial markets...
December 7, 2016
WTI bears on the prowl
WTI Crude was vulnerable to sharp losses on Tuesday following reports of OPEC output rising to a worrying record high of 34.19 million barrels per day in November which revived the oversupply concerns
December 7, 2016
CAD claws back ground
The Canadian dollar has finally managed to gain some ground against the strong USD after weeks of the market waiting for it to react to oil prices beginning to show some turn after the recent OPEC agreements...

OANDA Rating
Vantage FX Rating
Tickmill Rating
Orbex Rating
OctaFX Rating
Trade360 Rating

Beeoptions Rating
24option Rating
Binary Brokerz Rating
TropicalTrade Rating
Banc De Binary Rating
365BinaryOption Rating