Summary:

• Fed chair Yellen makes no reference to monetary policy in speech
• USD tumbles in immediate reaction
• Volatile trade seen in Gold

The highly anticipated speech from Fed chair Yellen has come as something of a dud with there being no mention of monetary policy. The following are selected excerpts from the text of the speech:

• Risks of excessive optimism to return sooner or later
• Some rules may be affecting market liquidity
• Any adjustments to US financial regulations should be only modest
• Memories of the costs of reforms since the crisis but they have made the financial system safer

These are the highlights, but as previously stated there is very little to go on here in terms of monetary policy. There has however, been a rather large move in the markets with the US dollar tumbling in the immediate reaction and the EURUSD spiking higher by around 70 pips.

  The EURUSD spiked higher by more than 70 pips in the minutes following the release of the prepared comments. Source: xStation

The price of Gold has risen since the release, benefiting from the drop in the US dollar. There moves however have been smaller than those that occurred prior to the release when the precious metal saw wild swings as stops were seemingly run. 

 Gold has been volatile around the speech, with big moves coming both before and after the text was released. Source: xStation