Monday, 24 Aug 2009

Crude Oil Prices Set for Bullish Movement

A quick overview of the forex market during today's early morning hours revealed some interesting information about our main currency pairs. The EUR/USD continues to float in its current bullish channel as the global stock market rally gains momentum. While the USD is weakening in regard to this development, the JPY has surprisingly surpassed the USD in strength as well. Traditionally both the USD and JPY will lose value during stock rallies, but the JPY surge indicates that something else may be occurring in Japan.

Commodities are also giving off somewhat mixed signals heading into the opening of the US markets. Gold took off around 09:00 GMT, rising roughly $3 an ounce. Crude Oil may have a similar correlation to the value of Gold and the USD, but failed to experience a similar rally as that seen in Gold. We may in fact anticipate the impending bullish movement in Crude Oil as a result.

Forex traders may also wish to focus their attention to the Canadian Dollar (CAD) at the opening of the American markets at 12:30 GMT. With important data releases due to impact the market, the CAD may see a higher than normal levels of volatility, and the wise investors out there surely have their positions set. Make sure you're one of these lucky traders and get involved today, grab the market by the horns!