Baku. 12 July. REPORT.AZ/ Head of the US Federal Reserve System (FED) Janet Yellen will give a speech at the Congress today, at 15:30 Baku time.
Report informs, Yellen's speech is of particular importance for global financial markets. Thus, today's announcements of the FED chief will give hints on when will discount rate increase and when will monetary tightening start? Given that the dollar's exchange rate fell on the global currency market on July 11, investors may have denied Yellen's speech.
This is due to the fact that recently the US economic indicators are not very strong.
Analytical Group of Report believes, Yellen's speech will indicate increase in discount rate this year and that monetary tightening program will begin softly. Thus, employment indicator revealed in US last week gives reason to make announcements in this direction. If so, a sharp rise in the dollar's exchange rate may occur. Otherwise, if Yellen hints on following US economic indicators and making decision in this regard, then US dollar will continue to decrease in global currency market.