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ECB’s Forum in Focus, Asia Markets Close Mostly Lower

Yellen Considers Some Equities as ‘Rich’

Federal Reserve Chairwoman Janet Yellen’s speech in London yesterday turned on the bearish side pertaining to the U.S central bank’s policy. Yellen said interest rate policy will have to be carefully monitored and gave no fixed time for another hike. On the other hand, the Fed Chairwoman did mention that she thought some equity prices seemed ‘rich’ concerning their valuations. While Wall Street declined modestly yesterday, the NASDAQ turned out to be the bigger decliner. The Consumer Sentiment report issued in the U.S yesterday beat expectations. Today the Pending Home Sales number will come out from the States, and tomorrow the vital Gross Domestic Product numbers will be published.

Markets Remain Restrained in Asia

Asian markets have been wary this morning as a few key speeches from global central bank leaders are to be published later today. The Yen is trading near the 112.00 mark against the U.S Dollar. Early on, the equity markets in Asia are trading down moderately. Friday will be a very important day as there will be plenty of economic data coming out. Inflation and Household Spending figures will come out of Japan, while Manufacturing stats will be reported in China.

ECB’s Forum a Worldwide Focus

European Central Bank President Mario Draghi startled investors on Tuesday when he mentioned that the ECB will more than likely contemplate a tighter monetary policy in the coming year. Draghi’s comments were conveyed in Portugal at the European Central Bank forum which will carry on today with numerous speeches from other global banking leaders. The Euro has done well and is securely above the 1.13 level against the U.S Dollar, and should be looked upon carefully today. European equity markets turned cautious late Tuesday as they paralleled the results from their North American counterparts. The ECB’s forum in Portugal today will be a leading focal point for global investors.

Yaron Mazor is a senior analyst at SuperTraderTV.

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This article was originally posted on FX Empire

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