First pitch from the Fed Chair is at 12:50 EST, CNBC reports, about 35 minutes from now.
Markets are consolidating, for the most part, with the JPY the exception. The Japanese unit has retraced a fair portion of Friday’s rally. We’ve taken back just over 50% of the jump from the 88.30 area, the origin point for the rally to 90.77. The 61.8% retracement of that rally comes in at 89.22.
Bernanke is expected to acknowledge the improved employment backdrop in his remarks later in the hour but is not expected to signal any dramatic shift in Fed policy. The Fed can continue to rein in quantitative ease for a period of time before it needs to contemplate hiking policy rates.