Wednesday, 6 Jan 2010

Crude Levels are at a 15 Month High

The Dollar continued its decline declined against the EUR following the release of the Federal Reserve's Dec. 15-16 meeting minute, as policy makers debated increasing and extending their asset purchases program should the economy weaken. The surprising news of a possibility for further increase in the assets purchasing program was negative for the Dollar as it signaled the U.S economic recovery may prove to be quite choppy. The EUR gained 0.4% to $1.4420 and increased 1.1% to 133.16 Yen, from 131.75. The Dollar rose as much as 1.1% to 92.74 Yen.

Despite disappointing Inventories data Crude Oil futures rose above $83 a barrel Wednesday. Prices had hit an intraday low of $80.85 a barrel after data from the U.S. Energy Information Administration showed an unexpected gain in crude and gasoline stocks. However, prices later rebounded as the drop in prices opened up buying opportunities. Crude is currently trading near the $83.10 level.