Friday, 18 Dec 2009

Dollar Jumps out to Three Month High Versus the EUR

Today's trading had the USD climbing exceedingly higher against the EUR as the EUR/USD pair dipped below the significant 1.4300 mark. The pair is at its lowest point in the previous three months. The dollar also jumped out to a new six week high versus the yen. Driving the dollar higher is speculation the U.S. economy is now on the fast track to recovery. This runs contrary to the Euro-zone economy which is facing debt repayment issues from Greece and renewed banking troubles from Austria.

Crude oil prices rose back above $74 after a report surfaced of Iranian incursion into an Iraqi oil field. This touched off concerns of supplies in the Middle East, fueling the price rally. Crude oil is currently trading at $74.34.

Traders may have noticed high price volatility during the New York trading hours. A lack of liquidity can be seen as the holidays and New Year approaches. Rallies may be overstretched with momentum driving larger price moves, giving traders an opportunity to capitalize on the volatility in the markets.