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Fed's Evans: Favors gradual rate hikes

Speaking about the economic outlook and monetary policy at the Prairie State College Economic Breakfast, Chicago Fed President Charles Evans favored gradual Fed rate-hikes and expected inflation to rise to 2% target area by 2019, albeit downside risks remain. 

Key quotes: 

   •   Need slow set of rate hikes to give economy adequate growth buffer in case of downside shocks
   •   Sees 2-2.5% growth for the next couple years due to fiscal stimulus
   •   Sees unemployment at 4.25% at end of 2019
   •   Willing to modestly undershoot on employment goal to make sure inflation doesn't get too high

USD/JPY challenges lows near 112.60, US yields melting

USD/JPY has rapidly reverted the post-Payrolls spike to highs near 113.40, returning to the negative territory and flirting with lows in the 112.60/50
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USD/CHF reverses majority of daily gains in post-NFP action

The USD/CHF pair faded a bullish spike closer to 100-day SMA resistance and has now reversed majority of its daily gains. Currently trading around 0.
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