Yellen likely to do a balancing act – ADMISI
The main event for the day is Yellen speech, given that probability of a rate hike in December has moved above 70% and for the first time this year markets and Fed policymakers appear to be in sync with respect to the timing of the next rate hike.
The question faced by one and all is whether Yellen would hint at a December rate hike. Marc Ostwald, Strategist at ADM Investor Services International (ADMISI) says an explicit hint of a December rate hike is unlikely to come through. He adds that Yellen, while stating the possibility of a rate hike this year, would do a balancing act by stating that Fed can afford to let the labour market run hot.
He also points to BOE speak as an event to watch out for and details the possible comments from BOE and their implications.
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