But why could the dollar be getting weaker in the face of a rate increase sometime soon... inflation expectations, I guess, but what about the effects of the expected rate increase?
Raising rates isn't happening in a vacuum.. Everyone else is expanding their money supply to.. Plus yellen slowed the rate of increase.. The market is just reacting to it... The dollar is still considered the safe haven...
Oh, I just read something that said Yellen was talking about raising rates... well, I guess what I really need is to find out how I can watch Yellen's speeches online? Anybody know how? I can't seem to find it...
You can see The Chairwoman taking charge 7 days apart as an uber dove hammering the slightly hawkish tone of other FOMC members in between her statements/speeches. http://www.barchart.com/quotes/futures/ZTM16. The main take away I have from today is her tip that the long end of the yield curve will be the target if things sour since they will have little room to zero from expected fed funds rate. May mean all maturing debt this year will be rolled into longer duration treasuries. She specifically stated the feds tools would focus on increasing duration and forcing long term rates down. I guess that would mean another outright QE bond buying program. The entire curve is shifting down. Seems outright directional bet on lower yields isnt outrageous here.