The FED chairwoman Janet Yellen is due to give a speech about the economy and monetary policy at the World Affairs Council of Philadelphia at 16:30 GMT. The FED FOMC minutes from their last meeting were hawkish and the recent comments from the from FED members implied a June or July rate hike but the economic data was the deciding factor. Since April we´ve had plenty of positive economic data from all the sectors of the US economy besides manufacturing. So, the market expectations for a summer rate hike increased.

Will Yellen Break the range in USD/JPY? 

But surprise surprise, last Friday the employment figures were published and they showed a collapse. Employment has been the strongest aspect of the US economy this has been the longest run with more than 150k new jobs a month ever. But we know it can´t last like this forever, the time will come that the employment number will drop but the wages should pick up. Maybe now it´s that time and the wages did hold up on Friday when the figures were published. But the market still saw the negative side of the employment report, that´s why Yellen´s speech today is important. This is the first time she will speak since Friday and we´ll see if she agrees disagrees with the market after the drop in the employment numbers. We have an article about how to trade the central bankers rhetoric.