U.S. indices had a steady session yesterday after Fed Chairman Powell said the U.S. economy appeared to be quite resilient, though the impact of the coronavirus would be monitored closely. The UK narrowly avoided recession in Q4 while the Reserve Bank of New Zealand held rates, as expected, but revised its forward path for rates higher.
US30USD Daily Chart
The US30 index was little changed at yesterday’s close and has opened flat this morning
The 55-day moving average has risen to at 28,610 while the 100-day moving average is at 27,934
There are no major data releases scheduled for today but Fed Chairman Powell faces day two of his semi-annual testimony. Yesterday he said as long as incoming information about the economy remains broadly consistent with the current outlook, the monetary policy stance will likely remain appropriate.
DE30EUR Daily Chart
The Germany30 index hit a record high yesterday from records going back to 2003, boosted by the sentiment on Wall Street
The index remains above the 55-day moving average at 13,311 while the 100-day provides longer-term support below at 13,035
Euro-zone industrial production probably fell 1.6% m/m in December, according to the latest survey of economists, negating the 0.2% expansion seen in November. ECB’s Lane is scheduled to speak today.
WTICOUSD Daily Chart
West Texas Intermediate (WTI) is clinging onto the $50 per barrel handle amid a lack of announcements from OPEC and its allies about additional production cuts when faced with the coronavirus threat.
WTI has opened slightly higher this morning, facing its second up-day in a row
The Energy Information Administration (EIA) releases its weekly stockpiles data to February 7 today. Analysts anticipate an addition of 2.93 million barrels following on from last week’s 3.36 million barrels. The API data earlier in the week showed an increase of six million barrels.