During Federal Reserve Chairwoman Janet Yellen’s testimony before the Senate Banking Committee yesterday, the dollar broadly sold off against major peers while U.S. Treasuries saw demand substantially increase, pushing the 10-Year Note yield back below 2.00%. Highlighted during her remarks was the Federal Reserve’s intent to keep rates low for an extended period of time with no imminent plans to hike interest rates in the next few FOMC meetings. She defended the Fed’s caution with rates, maintaining that any increase would remain dependent on improving economic data. Although wage growth was regarded as sluggish, Yellen highlighted that the drop in inflation as likely only transitory and would not broadly affect the Federal Reserve’s 2% long-term target.
Dollar Slumps on Yellen Testimony
Daily Analysis - 25/02/2015