Yellen speaks at 2100 GMT (5 pm ET) near Boston
The US dollar is trading on a softer footing heading into today's lecture from Fed Chair Yellen, notes Bank of Tokyo-Mitsubishi (BTMU).
"Today's lecture from Fed ChairYellen on "Inflation dynamics and Monetary policy" will be scrutinized closely to see whether she provides any signal of whether she agrees with the majority of FOMC participants that they should still begin to raise rates this year," BTMU writes.
"The US dollar will likely weaken modestly if Fed Chair Yellen provides a more dovish signal which further increases the likelihood that the Fed could delay raising rates until next year," BTMU argues.
"However, the content of the speech could be entirely academic and fail to provide any clear signal over the outlook for Fed policy having limited impact on the US dollar," BTMU adds.
If you look back at Yellen speeches over the past year or two, it's been tough to get a tradable headline. She doesn't say much, she never wants to surprise and she's generally banal.
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