Monday, 2 Nov 2009

EUR and AUD Make Gains; Crude Oil Rebounds

The US Dollar and yen both dropped steeply in trading on Monday, as a number of events, including an impending Australian rate hike, caused higher-return currencies to flourish in the market. With the Euro rising 0.5% against the yen, and the Australian dollar increasing 0.8% against the greenback, look for these trends to continue ahead of news reports from the U.S. Federal Reserve later this week.

Additionally, after a steep drop in trading on Friday, oil made a comeback on Monday with prices rising above $78.00 a barrel. This was largely due to reports coming out of China showing that new manufacturing contracts will lead to an increase in fuel demand. More likely than not, these prices will not increase further, and may decline later in the week as the news from China, as well as the strong American GDP, is offset by the week consumer confidence data coming out of the U.S.