Monday, 11 Jan 2010

Dollar Slightly Down Ahead of Trade Balance Publication; Oil Losing Momentum

The EUR/USD pair continues to rise in trading due to surprising results from Non Farm Employment report published last week. Although trading remained steady throughout the day as the pair came closer to the 1.4600 resistance level. No significant data which would cause a major shift in the currencies was released today.

Crude oil slipped Monday after prices seemed to meet a resistance above $83 a barrel. Forecast of warmer U.S weather and fears that oil markets are overbought weighed on the price. Although, during the day, crude oil price was slightly up amid weak US dollar and positive data on China's economy.

Looking ahead to tomorrow, investors are likely to pay attention to the Trade Balance publication set to be published in the UK and in the US. Trade balance is an indicator of import and export. Growing export is good for the currency as foreigners are required to buy the local currency.