12.02.2014 - Markets reacted positively on the speech of Janet Yellen
U.S. stock markets ended the day with on positive mood, because of the speech of the new Fed chief Janet Yellen to the Committee on Financial Services of the U.S. Congress. Mrs. Yellen stated that the labor market has not normalized yet and if the Fed will see a change in prospects of growth, it will consider possibility of suspending the reduction of quantitative easing program. The course of trading was also affected by data on wholesale inventories, which increased by 0.3%, with an expected growth by 0.5%. This fact was positively taken by the market as an indicator of improvement in consumer demand.
On this background, euro failed to overcome the upper limit of the local downstream channel and started to decline. Trading will pass today on the background of positive statistics on China's trade surplus, which rose in January to 31.9 billion dollars. Besides, today we should pay attention to industrial production in the Eurozone (10:00 GMT) and the speech of ECB President Mario Draghi (15:30 GMT).
The price of the British pound continued to rise because the increase of economic growth forecast by the Confederation of British Industry. According to analysts of the organization, the business will receive another portion of investments due to the low cost of credit resources, which in turn will stimulate the growth of trade in the country. Today, the focus of traders will be on the quarterly report of the Bank of England and the speech of its head Mark Carney.
The quotes of USD/JPY continue to move within the local rising channel. Statistics published today, has led to the growth stop. Thus, the monetary base in January has increased by 4.4% against the forecast of 4.2%. Tertiary index of business activity in December fell 0.4%, which is 0.2% worse than expected, but in January increased the data on orders for machinery equipment by 39.6% in annual terms.
Australian dollar continues to rise after the announcement of the Reserve Bank of Australia concerning the refusal on further rate reductions. Decrease in consumer confidence index by 3.0% in February, did not affect the mood of the bulls. The strengthening of the U.S. dollar also contributed to the growth of quotations.
Prices of Light Sweet crude oil continue to hold above $ 100 a barrel in anticipation of the publication of data on oil and petroleum products inventories in the U.S. (15:30 GMT). Due to the cold weather is expected the reduction of distillers inventories. Yesterday's API report showed that crude oil inventories have risen by 2.1 million barrels, while expected growth was by 2.5 million barrels. Further progress will depend precisely on today's statistics, in case of fixing above $ 100, the price will continue to rise. If it falls below $ 100, the closest target price will be at 97.00.
Gold continues to the increase. Recommendation of the Ministry of Commerce of India regarding easing of restrictions on the import of gold has supported the bulls. Assets of the world's largest holder of gold among investment institutions ETFs SPDR Gold Trust remained unchanged - at the level of 797.05 tons. We should note the increase of interest in protective assets such as gold.