The US dollar is at a higher rate with respect to its competing currencies. The dollar also holds its own in comparison to the crude oil. The future shows a further boom of the dollar against the said currencies as the euro is expected to go bearish according to traders in regards to its economic weakness at the present juncture. There are chances the Japanese exporters might sell but overall the yen is still lagging with respect to the US dollar due to the economic policy being employed by the Japanese central bank. The possibility of any trend reversals or massive movements is unlikely.
The EUR/USD pair is expected to stay within the range of $1.28 to $1.31 till the elections in the US. The momentary high it achieved this month in expectation of a bailout from Spain has run its course and virtually no leads towards it has made traders cautious when investing in the euro. The bailout from Spain would have led to easing of the central bank’s efforts to buy the debt of Spain, which would have increased the risk appetite of traders in investing in the euro instead of the dollar. The absence of any concrete evidence of such a bailout has made traders cautious again, leading to a bearish attitude toward the euro. Till something conclusive results in this department, the euro may not find an edge over the dollar.
The yen is suffering from weakness owing to inflation prominent in China and the efforts of the Bank of Japan to devalue their currency in an effort to boost the economy before the meeting in November. To further stimulate the uptrend the US dollar is getting mildly strengthened. This has led to the pair resisting any chance of consolidations and moving steadily towards high levels. Till there are signs of any positive reports from the side of Japan the future of the currency is quite gloomy. There may still be little resistance offered between levels from 79 to 86 making the trader’s efforts a little bearish. Outside this region though the traders will start with the bullish pattern till further signs of consolidation appear. The Yen may get little relief from the sale by Japanese exporters so the traders must avoid getting totally bearish against Yen.
Crude oil is largely stagnant in the present state of the market as the factors influencing its movement are in a state of balance. The economic crisis affecting the demand for crude oil, the high reserves of oil in the US (highest in fact since 1982) etc. are some of the factors that are going to decide the future for the price of crude oil. The minor fluctuations will be neutralized by the high quantity of oil in the U.S. and more supplies to come.