Yellen dovish on further policy tightening

Global equity markets were broadly back in risk on mode today as FED chair Janet Yellen gave an overly dovish speech yesterday stating that she had no intention to tighten monetary policy in the near future. She made it clear that due to continued weakness in global demand and a cloudy path for US inflation there was a call to tread carefully. Futures markets are predicting a zero chance that US borrowing rates will be raised at the next meeting in April with markets going on to price in just a 65.2 probability of a raise in November. The Dollar suffered on the back of the announcement with US and eurozone sovereign debt rallying on the news that the US has relaxed its outlook for further policy tightening.