U.S. and global week ahead
WEEKLY MARKET COMMENTARY |
This week is shaping up as one of the biggest five days in global asset markets in quite some time. Forward-looking investors should get a sense on February 24 whether Greece will remain in the euro zone or will seek to exit the common currency economy. In our estimation, a "Grexit" would be followed by significant volatility across asset classes, including a sharp decline in long-term U.S. yields and further appreciation of the U.S. dollar.
The following day, Federal Reserve Chair Janet Yellen will deliver her semi-annual testimony on monetary policy before Congress. She is expected to address investor concerns on a stronger greenback, the economic impact of falling oil prices, where she expects wages to move in 2015 and the condition of the labor market, and whether the Fed will begin its long-anticipated rate hike campaign this year. In addition to two days of Yellen's testimony, data releases in the U.S will feature a number of fresh reports on the housing sector, consumer confidence, inflation, durable goods orders and the second estimate of gross domestic product in the fourth quarter of 2014.