Prepare for Janet Yellen's testimony
The Fed’s Chairwoman Janet Yellen will start her testimony before the House Financial Services Committee at 15:00 GMT. Note that the text of her statement will be available 90 minutes earlier, at 13:30 GMT.
Lloyds Bank and FBS expect Yellen to say that the economy is improving; suggest that the present pace of QE tapering is appropriate for now, but remains data dependent; that interest rates are probably on hold until at least until mid-2015. As for the 6.5% unemployment threshold, the Wall Street Journal reports that there’s an internal debate about it going on, so Yellen won’t say much about it.
Westpac expects Yellen’s speech to be either neutral or slightly negative for USD. Analysts point out that there will be 4 another speakers after Yellen, 3 of whom will likely criticize the Fed for its loose policy, so Yellen might be on the defensive.
Also at 15:00 GMT there will be more US labor market data – a survey done by the United States Bureau of Labor Statistics to help measure job vacancies (JOLTS Job Openings).