The oil price slid as the latest scene in the OPEC soap opera saw Iran reject the possibility of a coordinated cut in production. The recent ups and downs of the oil price do not really change the economic consequences – oil base effects will drop out of most economies' consumer price baskets over the remainder of this year.
An aide to Japanese Prime Minister Shinzo Abe is urging the Bank of Japan to take action on the yen, suggesting it is damaging the economy. A stronger yen certainly damages reported profits of exporters, but there is limited evidence it hurts economic production nowadays. It may actually help boost consumer demand.
Fed Chair Janet Yellen speaks before Congress on bank regulation – it may give some opportunity for criticism of Fed independence. More scope for central bank criticism comes with ECB President Mario Draghi, who will be speaking before the German Bundestag.
German consumer confidence is due – there is no read through from the surge in US confidence yesterday, since confidence is a local affair. US durable goods include an investment goods subcomponent, but this may be misleading. Structural change is blurring the distinction between investment and consumer goods.