Two main trends dominated the market during last week – the bullish Yen and the bearish Crude Oil. The Yen strengthened against all the major currencies, yet this was mainly due to the weak Dollar and Euro. The more surprising development was the bearish price of Oil.
For several weeks it seemed that Crude Oil was on its safe way to reach $100 a barrel; however, starting last week, Crude Oil has been consistently dropping, and is currently trading at $77.80 a barrel. It seems that if the Dollar will continue to strengthen against the Euro, Crude Oil even has the potential to drop towards $70 a barrel, especially as global recovery seems slower than what was lately expected.
Today looks to be a relatively weak news day. The most significant publication seems to be the Canadian Foreign Securities Purchases, scheduled at 13:30 GMT. The Foreign Securities Purchases report measured the total value of domestic stocks, bonds and money-market assets purchased by foreigners during November. If the end result will reach above the forecasted 5.23B figure, it is likely to support the CAD.
