Market Snapshot – All Eyes on Yellen

Oil Prices Continue Higher

The oil prices have been moving higher in fits and starts over the last few months ever since it had touched the lows in the $43 region. Though there have been corrections in the price during the move up, we have always maintained that the prices are in an uptrend and the $55 region would be the minimum that the OPEC and non-OPEC oil producing countries would be looking for in the medium term in order to support their economy. So, every correction in the price has been viewed as an opportunity to go long on the oil contracts and those who managed to do that over the last few months have had a lot to cheer about. The prices broke through the $52 region yesterday and stayed there today as well on the back of the OPEC meeting on Friday where they said that the output cut agreement could last through 2018. This has helped the oil shares to move higher and they have been able to support the stock markets to an extent.

Yellen Likely to Talk Inflation

The market now looks forward to the speech from Yellen where she is expected to touch upon inflation. The dollar has been gaining in strength in anticipation of some more support from here during her speech and this is likely to continue in the short and medium term though her speech is likely to be the driver for the markets over the next 24 hours.