12 April, AtoZForex, Lagos – Although the meeting between President Obama and Federal Reserve chair Janet Yellen was closed to the media, White House Press Secretary Josh Earnest described Obama as “pleased” with Yellen before the meeting. The pair met to discuss the U.S. economy amid signs that growth may be slowing as consumers retreat from spending. According to the White House statement after the meeting, Obama and Yellen “discussed both the near and long-term growth outlook, the state of the labor market, inequality, and potential risks to the economy, both in the United States and globally,”
This gives no hint as regards the timing for the next Fed rate hike. However, it remains clear that policy makers are remaining cautious in their actions. The recent dollar weakness is actually welcome by the Fed. Attention will now be on the April policy meeting of the Fed, as markets await to see if rates will finally be hiked.
UK consumer price index (8:30 A.M GMT)
Today, we have the UK CPI, forecast to show a 0.3% change in the price of goods and services purchased by consumers. Alongside, the producer price index data is also due, forecast to show a 2.4% change in the price of goods and raw materials purchased by manufacturers. The pound seems to be rebounding from its downward trend against the USD and looks set to to continue bullish ahead of the UK CPI.
Oil price rally here to stay?
Oil prices have enjoyed about six straight days of rally, after bouncing from around $36 per barrel recently. This may be attributed to optimism ahead of the much anticipated meeting of major world oil producers, seeking to reach a consensus over output levels as the oversupply conditions continues. The general expectation is for a freeze of output around current levels, which may actually do little to reduce the oversupply in the short term since the current production levels are close to record, and beyond demand levels. Iran remains a major obstacle, as the country has clarified its intentions severally, that it is not ready to compromise on its production levels. Also, the count of active US oil rigs fell even further, according to data released on Friday. The Oil price rally is expected to continue through the week, considering the current bullish momentum and technical picture.
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