The long awaited speech of the Fed Chair Janet Yellen boosted
the expectations for raising the benchmark interest rate in the next months.
Surely this will not happen in June, but she pointed out that the US central
bank definitely will lift the rates. Yet the exact time frame is not put.
Yellen pointed out some „sizeable” instabilities encicled the
US economy. The NFP data encouraged the thoughts of the central bankers. Also we
must face the global development and in particular the UK referendum vote. So
the future of the Fed’s monetary policy is tightly related to solvation of
these fluctuations.
Following Yellen’s speech US dollar remained stuck around 3-week low. EUR/USD fell
0.08% and was trading lower. The intraday low was reached at 1.325.
USD/CAD dropped with 0.60% and was trading 1.2854. The daily low was hit at 1.2831,
which pinned a 3-week high.
Wall Street closed in green, as mostly profited the financial and energy
sector.
S&P 500 closed 0.49% up at 2,109, DJIA finished 0.63% higher at 17,919 and
Nasdaq rose with 0.53% to 4,968.
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