After today's US inflation reading, US Treasury Secretary Janet Yellen shared some rather dovish comments with the market. The dollar is trading down today, with the USDIDX index losing 0.25% and the EURUSD gaining 0.29% although the rise is on fairly low volume, putting a question mark over sentiment on the major currency pair ahead of Powell's speech tomorrow (8:30 pm).
Yellen comments
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Open account Try demo Download mobile app Download mobile app- I see no reason why inflation shouldn't come down to the Fed's target. Inflation is coming down meaningfully.
- Rising real rates may impact the Fed's decision on the rate path.
- There's no evidence that inflation is becoming ingrained, or that there is a wage price spiral.
- The US economy on the path to a soft landing.
- It is not necessary to have high unemployment to lower inflation.
- Wages are rising at a healthy pace, the labor market remains strong, but it is cooling.
- There's no reason to believe that the last mile will be especially difficult.
- Wage increases continuing at a healthy pace.
- The labor market remains strong, but is cooling.
- Prices are rising at a much slower rate than before, but the level of prices, including rents, are still higher.
Source: xStation5
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