what you expect? imo-Bernarke was pretty clear-no increase at least until 2014. FED comments are more important... for now
Well now that Yellen has made such boohaha about an rate increase, even though and she feels that the current economic condition really does not warrant an rate increase, she will have NO choice but to increase the rate because the market has been made to expect it now. If she doesn't then the market is going to go down even further than if she hasn't made people to believe to be an increase because the market is going to think she might know something about the economy that the rest of the market doesn't when in fact she might have changed her assessment of the economy. If she hadn't opened her mouth first and yapped about an rate increase so prematurely and just did what she needed to do on the rate decision day when she's made all the analysis, none of these speculation and drama would've happened. Now she's stuck between doing REALLY the right thing for the economy and putting where mouth is. So much for not creating too much market volatility and increasing transparency and credibility of the Feds. Now she stands to lose everything. One sentence: Much Ado about nothing!!
By watching history data, FED 90% raise interest rates and it could affect on USD and all majors pairs. E/U would have slight decline (my guess).