What's Happening Today:
- As Asian markets closed mixed and European markets are indicating a positive start to the trading day, the U.S.-based futures are pointing to a higher open this morning. On the heels of the Janet Yellen speech yesterday where she cautioned on moving rates too cautiously, the likelihood of another rate hike in December has increased. As the macro-economy remains in focus for the rest of this trading week, a number of Fed speakers are slotted to speak and provide color on the vision for the U.S. economy and the implication of the most recent inflation readings on the overall rate environment.
- Traders are looking for a reaction in the dollar index (DXY) and USD/JPY among other currencies in response to Chair Yellen's speech and the impending Fed speakers. Additionally, fixed income traders are monitoring the yield environment closely as the indication for more rate hikes is certainly to impact directional bias in U.S.-based treasuries.