Afternoon Market Update – 14/02/2017 – by Jazz Singh

February 14, 2017 by

Markets seem to be in a profit taking zone this session following yesterday’s rally in global equity and the dollar. The dollar index has drifted 0.2 percent from its highs at the $101.00 level; we look to Yellen’s speech this afternoon to verify further moves in the greenback. We’ve had UK inflation data this morning, which was an improvement on December’s reading but worse than estimated. As a consequence we’ve seen a strong sell off in pound sterling of over 0.6 percent; cable is approaching the 61.8 Fibonacci level from 2017’s high-low range. Looking to the commodity complex we see crude oil higher for the day as investors seem to put more emphasis on OPEC cuts over increasing US inventories. Gold has risen 0.3 percent, regaining some of its losses seen in yesterday’s risk on climate. Copper is trading at its highest levels for some 2 years as two of the world’s biggest mines minimize their operations. Other than the aforementioned speech by Fed Chair Yellen, we also look to PPI data from the USA at 13:30 GMT.