Fed: Yellen’s testimony to be the main event of the day - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that the main event of the day is going to be in the form of fed Chair Yellen’s semi-annual testimony to Congress (text released at 13:30 BST).

Key Quotes

“It’s hard to imagine anything new coming from the Fed Chair today. The factors holding inflation down are transitory, the time is right to look at a very careful reduction in the size of the Fed’s balance sheet and the labour market is getting tighter. If the market hears a balanced message, consistent with Treasury yields staying in a broad range and the Fed raising rates slowly towards but not to their long-term projection of 3%, then this should be EMFX-friendly and dollar-neutral.”