Flash: We expect the Federal Reserve Chairman to say essentially three things - BBH

FXstreet.com (Barcelona) - Brown Brothers Harriman analysts are expecting Fed Chairman Bernanke to say three things today.

First, they think that he will say that the Fed has made progress on its thinking of the QE-exit strategy. Second, that there will be no imminent tapering off of purchases of long-term assets and that the decision is dependent on the trajectory of prices and the labor market. Third, that fiscal policy and weakness in Europe are headwinds for the US economy and that the Fed cannot yet be assured that economic growth is sustainable. They write, “We suspect some late dollar longs are vulnerable if Bernanke hits these points.”