Monday, 24 Aug 2009

Dollar and Crude Oil Hot on Higher Optimism!

The Dollar and Crude Oil proved to be hot trades today on the back of the recent Jackson Hole meeting, attended by central bankers and key global financial leaders, which concluded yesterday. The confidence that was sparked by optimistic statements from U.S. Federal Reserve Chairman Ben Bernanke and President of the European Central Bank Jean Claude Trichet led to a stock market rally today.

Today's global stock market rally also led to high volatility in the forex market. The Dollar was highly traded, and at times has been trading bullish and at other times bearish vs. the EUR. The pair now stands at the 1.4323 level. The USD did make inroads into the GBP by 100 pips, as the GBP/USD cross now stands at 1.6420. Crude Oil continued to rise today on the rising optimism, and the commodity now stands at $74.65.

As late night trading builds up, it would be a wise move to continue trading very big positions in the USD's main crosses and Crude Oil. This strategy is likely to enable you to make big profits going into Tuesday's trading. Furthermore, the GBP is likely to be a hot currency to trade tonight, ahead of tomorrow morning's Nationwide HPI housing figures from Britain.