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Hardy: What the markets want from Yellen
Janet Yellen, the new Fed Chair, faces the US Congress and Senate this week. Saxo's John Hardy explains what the market's looking for and why it might be disappointed. He says we're likely to see more assurances that interest rate rises are a long way off and the scenario for tapering slowly remains on course. However, with ever present risks from the likes of emerging markets and Europe, such a 'Goldilocks scenario' is going to be tough to maintain.
John also says that her words on QE will be interesting as it's now become an embarrassment. It's likely to provoke some tough questioning from lawmakers, not least from the Republicans.
It will be interesting too to see how the dollar reacts, notably if we get a reversal of fortune in recent market themes, with perhaps the USD gaining ground against other majors and whether it becomes weaker against the commodity currencies.
02:10 minutes
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