The Yen May Be the Best Indicator at Deciphering Yellen's Tone
NEW YORK ( TheStreet) -- As investors await Janet Yellen's comments at the Federal Reserve's annual symposium in Jackson Hole, Wyo., it could be currency fluctuations overseas that tell the most about the future direction of U.S. equities.
Investors are looking to a statement from Yellen, the Fed's chairwoman, for clues about whether the Fed will continue to keep interest rates low as the U.S. economy gradually improves.
>>Read More:Warren Buffett’s Top 10 Dividend Stocks
Analysts, however, tend to have a difficult time coming to a consensus on whether comments from the Fed lean more dovish or hawkish, unless specific language is used.
Investors may be better suited looking at movements in the U.S. dollar/Japanese yen currency pair following Yellen's comments to gauge the market's reaction.
FXY data by YCharts
>>Read More: Housing Is Heating Up; Does This Change the Fed’s Thinking?
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts