Yellen boosted the rate hikes in 2015

Today US dollar is rising and stock index futures indicated a higher open after yesterday's speech from Federal Reserve Chair Janet Yellen.

Yellen, who spoke after the market closed, may have slightly recalibrated expectations for a rate rise, by saying she personally anticipates a hike this year.

Traders had hoped the speech would clarify the central bank's position on rate hikes, after last week's FOMC meeting and a week of volatile markets.

TheFed chair said it would likely be appropriate to raise rates from near zero"sometime later this year," though the decision would continue torely on economic data. In her comments last week, she had not identifiedherself as part of the group favoring rate hikes this year, but she had made asimilar comment during the summer.

Before Yellen’s speech markets were pessimistic and US indices closed with losses while the bonds rose. Interest rate cuts in Norway and Taiwan led to extra caution. 

After Yellen’s speech the profitability on 10-year government bonds rose and US stocks futures rose. Dow Jones is up about 240 points, while S&P 500 and Nasdaq also indicated a higher open.

USD/JPY reached 120.20 as before Yellen’s speech has dropped to 119.21. This month the pair was trading in a narrow range 118.60-121.38, as opposed to the previous month, when the movements were between 116 and 125.

The Australian dollar is now 0.7011 as yesterday reached two and a half week low at 0.6938. The gloomy prospects for China, which is the main trading partner of Australia, slowly and surely undermined the currency.