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25 Feb 2015
No rush to raise Fed rates – GrowthAces
FXStreet (Barcelona) - The Growth Aces Research Team shares they key points of Yellen’s speech, and further shares the trade setup for EUR and GBP versus USD.
Key Quotes
“Fed Chair Janet Yellen said the Federal Reserve remains patient in deciding when to start raising interest rates because wage growth remains sluggish and inflation is running below the Fed's target.”
“Janet Yellen said the Federal Reserve is preparing to consider interest rate hikes on a meeting-by-meeting basis.”
“Yellen described how the Fed's rate-setting policy committee will likely proceed in coming months - first by removing the word "patient" in describing its approach to rate hikes, then entering a phase in which rate hikes are possible at any meeting.”
“She said, when the word "patient" disappears it means the Fed will have full flexibility to act if its judges the economic data warrant it. She added: “It is important to emphasize that a modification of the forward guidance should not be read as indicating that the committee will necessarily increase the target range in a couple of meetings”.”
“The USD fell against a basket of currencies after Janet Yellen indicated no rush to raise interest rates.”
“EUR/USD trading strategy: long at 1.1325, target 1.1550, stop-loss 1.1325”
“GBP/USD trading strategy: long at 1.5400, target 1.5580, stop-loss 1.5460”
Key Quotes
“Fed Chair Janet Yellen said the Federal Reserve remains patient in deciding when to start raising interest rates because wage growth remains sluggish and inflation is running below the Fed's target.”
“Janet Yellen said the Federal Reserve is preparing to consider interest rate hikes on a meeting-by-meeting basis.”
“Yellen described how the Fed's rate-setting policy committee will likely proceed in coming months - first by removing the word "patient" in describing its approach to rate hikes, then entering a phase in which rate hikes are possible at any meeting.”
“She said, when the word "patient" disappears it means the Fed will have full flexibility to act if its judges the economic data warrant it. She added: “It is important to emphasize that a modification of the forward guidance should not be read as indicating that the committee will necessarily increase the target range in a couple of meetings”.”
“The USD fell against a basket of currencies after Janet Yellen indicated no rush to raise interest rates.”
“EUR/USD trading strategy: long at 1.1325, target 1.1550, stop-loss 1.1325”
“GBP/USD trading strategy: long at 1.5400, target 1.5580, stop-loss 1.5460”