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Yellen's speech eyed

The Federal Reserve Chair Janett Yellen will speak at the International Monetary Fund today at 15:00 GMT. She will then discuss the questions of US financial stability with the IMF Head Christine Lagarde. Investors will closely monitor the Yellen's rhetoric to gauge the likely time gap between the end of the QE3 program and the beginning of the rate hiking cycle. 

"If Yellen does discuss current monetary policy, we can probably expect more of the same overall dovish tone that we saw from her post-FOMC press conference", analysts at Deutsche Bank forecast. "Recall also that at that press conference, Yellen mentioned that 'high yield bonds have certainly caught our attention', so it will be interesting to see whether she elaborates on this topic given the IMF appears to have become more vocal about the issue of financial stability lately."

Strategists at RBS point that that the USD decline from any dovish comments is "more limited than the potential USD upside on a hawkish surprise."

Note that Yellen will speak ahead of the US nonfarm payrolls release on Thursday. 

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