US Binary Option SitesUK Binary Option Sites

Market news as on February 13th, 2014

Yanet YellenJanet Yellen testified as the Chairwoman of the Federal Reserve for the first time yesterday. She said that the Fed will probably continue to attenuate the monetary stimulus.

This would happen if the information that’s supposed to come in would support the improvement of the labour market as expected and if inflation continued to go back towards its sole objective.

Having said that, purchases aren’t on a pre-set course as many Americans are still unemployed and inflation continues to go below its long-term objective.

Janet Yellen continued to say that the economic conditions are unusual currently and that the policy based on rules is difficult. She lent her support to the Quantitative Easing during the press conference and said that it has certainly added a momentum towards the recovery of economy and that the rate of unemployment has reduced during QE period.

She concluded by saying that the Fed will choose to stop the taper momentarily by reassessing whatever is appropriate if noticeable changes on the outlook occurred. The US stocks rose higher after the release. At the ending of the US session, the S&P500 showed a gain of about 1.11% while the Dow Jones showed about 1.22% gain. In addition, the Asian stocks soared and boosted following the Chinese Trade Balance. They ended on a higher note with Hang Seng adding about 1.47% and Nikkei 225 from Japan adding about 0.56%. Also, Shanghai Composite from China added 0.30%.

Traders should look out for the European Industrial Production scheduled at 10am along with The Bank of England’s inflation report scheduled at 10.30am.

The API showed a decrease in Crude and Gasoline and following that, WTI Crude extended the gains. The demand in US continues to be boosted, increasing the prices due to the cold snap. Traders should follow the inventory levels to be released at 3.30 pm from The Energy Information Administration.