During yesterday’s trading, Crude Oil dropped to $71.20 a barrel. This was largely due to the recovering Dollar. The Dollar recovery took place after a better-than-expected Consumer Confidence in the U.S. which showed that Americans consumers are regaining faith that their financial condition is likely to improve during the next few months. If the Dollar will continue to strengthen today, it could turn Crude Oil to drop below $70 a barrel.
Today’s leading publications:
German Ifo Business Climate (08:00 GMT) – This indicator is used to measure the current market conditions by asking about 7,000 businesses to rate the relative level of current business conditions and expectations for the next 6 months. If the actual result is as high as expected, it is likely to strengthen the EUR.
Durable Goods Orders indices (12:30 GMT) – These indices are used to measure the production condition in the U.S. The Core Report doesn’t include transportations items. Because orders for aircraft are volatile and can severely distort the underlying trend, investors tend to relay a greater importance to this core report, rather than the regular Durable Goods Orders report.
New Home Sales (14:00 GMT) – This report is a prime indicator for the housing sector. As you probably know, this entire crisis began due to a real-estate bubble that was shattered in the U.S. Many analysts believe that only positive result from the housing sector will truly show that the economy is recovering, and thus a positive figure from this report might boost the Dollar.
Crude Oil Inventories (14:30 GMT) – Like every week, this is one of the most impacting news event. Its publication has an immediate reaction on Oil prices, which is followed by a sharp change in currency values as well. Traders should not miss out on this publication, especially those who trade Crude Oil.
