Derek Halpenny, European Head of GMR at MUFG, notes that the Fed Chair Yellen was last night more eager to emphasise the positives while sharing the stage with the previous three Fed Chairmen – Volker, Greenspan and Bernanke. Key Quotes “She strongly defended the decision to raise rates in December and argued that the US economy was “coming close to” full employment and denied that the US was a “bubble economy” while confirming that the economy was on track for gradual rate increases. However, she did also keep alive the view that the FOMC was willing to allow inflation to drift higher than its target by stating that while 2% is the inflation goal – “it is not a ceiling”. The asymmetric bias to monetary policy action remains and in that sense the dollar is unlikely to get the same upward traction from good economic data from the US than downward traction from any surprise weak data. That leaves investors more biased toward selling dollars than buying.” For more information, read our latest forex news.