Dollar to be in the Spotlight this Monday!



The US dollar is mildly stable at the moment and is expected to stay like that till the elections. It is gaining gradually against the Euro and Yen. The dollar has strengthened against the Euro as there are uncertainties still hovering over the issues of Spain and Greece. Both the nations are resisting the decisions of bailouts that are complicating the efforts of any investment favoring them. The Japanese Yen has been sold in expectation of easing steps from the Bank of Japan. However, the rise of the dollar against the Yen is likely to diminish as the Japanese exporters are looking to sell. The data from commodities future trading has somewhat increased investments against the dollar.


The lack of any progress on the bailout issues of Spain has made traders wary of the fact that the European counterpart of the EUR/USD pair has been quite weak. Although the hope of Spain reaching a bailout conclusion did make the Euro reach a high but the lurking uncertainty is going to hurt the currency again. The recent meeting of European leaders did not talk enough of the indebted Spain and Greece issues. The bailout request would have allowed the European Central Bank to buy Spain’s stocks and thus led to an investment in the riskier currencies, but any chances of that have been dampened by the inability of the European nations to reach a conclusion on this issue.


USD/JPY pair elevated to 79.45 in the previous week thus breaking the resistance level of 79.22 showing no rebound from 77.13. Future prediction of the pair tells that it would a find new resistance level at 80.61. Reversals from the current trends can only be expected if the level of 78.60 breaks in the near future. The overall prediction would otherwise suggest a meekly bullish attitude of the traders. For now there aren’t any signs of trend reversal. There will an effort by the pair to strengthen between the levels 75.56 to 85.51, thus traders would be a little bearish till 85.51 resistances can hold. Thus there is a general uptrend with occasional pullbacks.

Crude Oil

The global economic concerns and the probability of a major crude line from Canada to the US to get started on schedule have somewhat dampened the stocks of crude oil. The short term disturbance is likely to be contained with little problem. There are enough supplies of oil in the US and so there isn’t an expectation of a bullish trend. The North Sea Buzzard oilfield being delayed in getting started could give an upward push to the crude oil stock. The crude oil stocks in the US are 11 percent ahead on the levels in the previous year. This provides the US economy a buffer to survive the fluctuations in the oil market. The oil stock is likely to act as a balancing factor in the struggling economy.