Yellen starts her two day appearance in front of the government
I'll keep this one short and sweet. There's really only going to be one thing the market is going to hang on for when Yellen starts speaking, and that's whether March is going to feature as a hike possibility.
We've almost got a repeat situation to last year where we had a Dec hike accompanied by FOMC members proclaiming multiple hikes throughout the year. We all know what we got then and I suspect we'll get the same now.
The market is looking at the summer for the next likely hike but it will be on guard to change that if Yellen gives them cause to do so, so any green light for a March hike will see the buck pop higher.
She rarely strays from the current Fed script though so expect the usual references to watching the data, headwinds, what the economy needs to do more of etc etc.
This will be her first testimony after Trump's arrival in power so expect some of the questions to feature fiscal connotations. Also look for signs that she's getting tripped up by certain questions as she's had a few nervy moments with her answers recently.
Lastly, get the coffee on because these things can be a real snore fest. You can watch it live from here.
