25 Feb 2015
Citi: Yellen’s testimony signals Fed continues to move towards normalization – eFXnews
FXStreet (Barcelona) - The eFXnews Team share Citi Group’s view from yesterday’s Yellen’s testimony, with Citi viewing the speech as USD positive as it points that Fed continues to move towards normalization.
Key Quotes
“The testimony is a cautious move by the FOMC to prepare the market for a move towards normalization, without a precommitment to do so just yet.”
“Overall, we see this shift (even if glacial) towards a rate normalization as USD positive, but other conditions need to be met as well.”
“The USD weakening immediately after the statement release highlights a disappointment by a minority of short term expectations seeking patience to be removed today.”
“Instead, today’s testimony is a necessary signal from the Fed that is continues to move toward normalization – and the first of three key goalposts we would expect for a second USD move (the February NFP and March FOMC statement are the next two).”
“A strong NFP report in March would of course imply that patience could be dropped later that month. Hence, data watching remains paramount.”
“Removing patience would imply market pricing would have to shift from September to June.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“The testimony is a cautious move by the FOMC to prepare the market for a move towards normalization, without a precommitment to do so just yet.”
“Overall, we see this shift (even if glacial) towards a rate normalization as USD positive, but other conditions need to be met as well.”
“The USD weakening immediately after the statement release highlights a disappointment by a minority of short term expectations seeking patience to be removed today.”
“Instead, today’s testimony is a necessary signal from the Fed that is continues to move toward normalization – and the first of three key goalposts we would expect for a second USD move (the February NFP and March FOMC statement are the next two).”
“A strong NFP report in March would of course imply that patience could be dropped later that month. Hence, data watching remains paramount.”
“Removing patience would imply market pricing would have to shift from September to June.”
This content has been provided under specific arrangement with eFXnews.