Despite Yellen's testimony signaling a "gradual" tightening in interest rates would be appropriate, it also quashed the idea of the Federal Reserve adopting an aggressive rate hike path, as the Fed believes it is not that far from the neutral rate.
In her Congressional testimony, Yellen hinted at "gradual rate hikes" in the next few years and backed the reduction of the size of its USD4.5 trillion balance sheet later this year.
While investors and some Fed officials are anxious about the recent dip in inflation and are looking for greater progress toward the central bank's 2% target, Yellen argued that some temporary factors are holding back inflation but the Fed is still on pace to hit its target goal. The next possible support for the greenback is seen around 1.16 versus the euro and 0.93 against the franc. So anyone expecting this "normalisation" to start in the very near-term has probably changed their call and September still seems most likely.
Yellen considered the risks of faster or slower growth than the Fed now expects as roughly equal.
For traders that do want to look to take on exposure during such periods, risk management is of the upmost importance as one of those swings that a trader is trying to fade can turn into an extended trend of adverse excursion.
Alexa makes its full smartphone debut with a new HTC U11 app
How soon? If HTC's tweet is to be believed, or if they're on schedule, the switch will be flipped this Monday, 17th July. As nice and pretty as the HTC U11 may have been when it launched, it was, in practice, somewhat of a half-baked product.
USD/JPY has finally caught some element of pullback - but now the big question is where that pullback might finally find support.
The S&P 500 healthcare index was up 0.23 percent, showing little reaction to U.S. Senate Majority Leader Mitch McConnell's unveiling of a revised healthcare bill.
An index of airline stocks was up 2.3 percent after the No. 1 US airline, American Airlines Group Inc, reported quarterly results that beat expectations and its shares rose 4.2 percent.
"Caution on the part of consumers comes despite a solid job market and booming equity markets and is feeding into core inflation through price wars on cell phone service, airfares, cars, clothing", she told Business Insider.
The Kiwi was the best performer of the G10 currencies overnight as the market further digests Fed Chair Yellen's comments from early Thursday morning.