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22 May 2015
Yellen: A double-edged sword - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that Yellen’s speech comes at 2pm today and say's that it is a bit of a double-edged sword.
Key Quotes:
"On the one end, it could be rather significant in that it will represent the most up-to-date assessment of the economic outlook while on the other-end, what more can she say without having the luxury of additional Q2 data and a mixed bag of surveys in hand?"
"This puts the onus on high frequency data in the coming weeks to shape the Fed’s bias at the June FOMC, which will serve as a setup for future policy decisions. Instead, Yellen’s speech will likely be balanced, offering some scope for optimism but still leaving the market wanting for more (i.e. there is no Q&A). And, with the US long weekend ahead, the USD may just finish the day exactly where it started."
Key Quotes:
"On the one end, it could be rather significant in that it will represent the most up-to-date assessment of the economic outlook while on the other-end, what more can she say without having the luxury of additional Q2 data and a mixed bag of surveys in hand?"
"This puts the onus on high frequency data in the coming weeks to shape the Fed’s bias at the June FOMC, which will serve as a setup for future policy decisions. Instead, Yellen’s speech will likely be balanced, offering some scope for optimism but still leaving the market wanting for more (i.e. there is no Q&A). And, with the US long weekend ahead, the USD may just finish the day exactly where it started."