Market volatility may rise in anticipation of Yellen's speech on Friday

Traders and investors will know a little more later this week, wheather Fed will rise interest rates.

Employees of the central banks around the world will gather for a symposium on the monetary policy in Jackson Hole, Wyo., at the end of the week. Members will discuss monetary policy in the two-day annual meeting on Friday by Fed and Janet Yellen will make a public statement which will provide important context for market prospects of the upcoming changes concerning interest rates.

As the recent fudge on Fed, Yellen's comment is likely to be pacifist and conservative, and is expected to emphasize the dependence of all future Fed moves form the upcoming economic data.

The US economy is close to Fed goals, which give reason for a possible increase in interest rates in 2016, said the vise-president of Fed Stanley Fischer. He said that Fed is "close to their targets" during a speech in Aspen, Colo.,. He also noted that GDP is likely to increase in the next quarters, headwinds to USD ware-off and investment recover to their previous levels.

Chances of rates increase in September is currently around 18%, which is why markets does not expect Yellen's statement to say anything about a rise. This may lead to a slight increase in indices and a slight decrease in dollar prior to Yellen's speech. For November chances this to happen are 41%.