Source: ForexYard
The US Dollar received some added support yesterday evening after the Federal Reserve issued a statement saying there are clear signs that the American economy is on its way to recovery. While the Fed stopped short of raising record low interest rates, the positive statement was enough to boost the Dollar against both the EUR and Yen.
As of this morning, the USD had reached below the 1.44 price level against the EUR, and seems poised to stay above 90 Yen throughout the day. If today’s market news continues showing positive American data, and relatively stable European data, this trend will likely hold for the rest of the week.
Additionally, we have on one hand a rising Dollar, which normally puts downward pressure on commodities like Gold and Crude Oil. On the other hand we have large declines in oil inventories which suggest a boost in demand, or a shortening of supply, both of which are driving oil prices back up towards $75 a barrel. I suspect that the rising dollar simply has not yet been felt in oil trading and we should see some downward corrections later today.
Forex Market Analysis provided by ForexYard.
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