Tuesday, 29 Dec 2009

USD Mixed vs. Majors; Crude Oil Surges towards $79

Just before the opening of the US markets, the dollar appeared to be experiencing some mixed results against the other major currencies. Opposite the British Pound, the greenback was fairing quite well and had sharply risen to as high as 1.5980 before dropping back towards 1.6000 and leveling off. On the other hand, the USD was depreciating steadily against the EUR and CHF, both of which have continued to pare losses with the dollar from the start of this week.

Commodity prices seem to be reacting to the sudden downward correction of the USD with mixed results as well. Precious metals like Gold and Silver have leveled off, halting their downward movement which coincided with recent dollar strength. But Crude Oil took off in a massive surge approaching $79 a barrel. Some analysts now expect Crude Oil to continue rising as there doesn't seem to be much in the way of stopping a price surge.