- Janet Yellen, Federal Reserve Chairwoman
This week's main highlight is the ECB meeting, while all hopes for traders, who are trading the Dollar lied on Janet testimony, an event which could be the main catalyst for the Dollar. However, as it was widely expected, the Chairwoman offered no surprises and provided no bold comments. Therefore, market reaction was subdued.
The U.S. policymakers are hoping for a highly anticipated spring revival in economic growth, which is likely to receive a boost from increased business hiring and consumer spending– the largest part of the economy. At the same time, Yellen cited the housing market as the main concern, which is missing from the upturn. During the first day of testimony before Congress's Joint Economic Committee, the head of the Federal Reserve pointed out the economy is on the right track in the second quarter, after posting sluggish growth in the first three months, as harsh winter conditions crimped business activity.
Yellen predecessor, Ben Bernanke cited labour and housing markets as the key drivers of economic growth. In late 2013 we have received a confirmation the property market is slowing. The latest report confirmed it as well, as existing home sales for March plunged for the seventh time in eight months and fell 7.5% on a seasonally adjusted basis from the same month a year earlier.
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