WASHINGTON (Alliance News) - The price of crude oil was steady near its 2-month high Friday morning as traders await cues from the US GDP data due out today.
Light Sweet Crude Oil (WTI) futures for February delivery, the most actively traded contract, eased USD0.28 to USD98.76 a barrel. Yesterday, oil settled higher on improved demand outlook and after the US Federal Reserve decided to slash its monthly bond-buying program by USD10 billion, following its two-day policy review meet Wednesday. The Fed expects to see sustained jobs creation and an uptick in the rate of inflation before further scaling back their unprecedented support measures. Any further reduction in the size of stimulus will be contingent on economic data.
This morning the US dollar was hovering near a two-week high versus the euro and Swiss franc, while moving higher against sterling. The buck jumped to a fresh five year high against the yen.
In economic news from the euro zone, German consumer confidence is set to rise to its highest level in more than six years in January, a survey by market research group GfK revealed. The forward-looking consumer climate index for January rose to 7.6 in from 7.4 in December. Economists had forecast the index to remain at the December level.
Meanwhile, Standard & Poor's lowered the sovereign ratings of the EU from 'AAA' on Friday, citing deterioration in overall creditworthiness of member states amid contentious EU budgetary negotiations. The long-term ratings were lowered to 'AA+', while it affirmed short-term credit rating at 'A-1+'. The 'stable' outlook reflects the assessment that the risks to the long-term rating on the EU are balanced, S&P said.
Elsewhere, the British economy expanded 0.8% quarter-on-quarter in the third quarter, unrevised from the second estimate published on November 27, the Office for National Statistics said in the latest estimates released . However, the statistical agency slightly revised up the GDP figure for the second quarter to show a 0.8% expansion compared with the previously reported 0.7% growth.
Traders will look to the final third quarter GDP data from the US Commerce Department due out at 8.30 a.m ET. Economists estimate GDP growth of 3.6% quarter-over-quarter, unchanged from its previous estimate.
