Once again is an intrigue in the market… From one side, the fundamental data and Mr. Trichet indicate that the possibility of a crisis is low and everybody can relax for the next six months. From the other side, rating agencies have downgraded Italy and Spain. This action has pushed the US dollar (right now the most popular safety asset) to new highs. The next week can be a key part for future movements. In the absence of critical, scheduled event risk next week (no NFP or ECB-level releases); the market is concentrating on the underlying fundamental themes.
We can use the oil price like an indicator and will sell the US dollar if the oil price will grow and buy if the price will go down during the next week. Since the US and Canadian markets are closed on Monday, Tuesday should shine some light on the situation.
We can use the oil price like an indicator and will sell the US dollar if the oil price will grow and buy if the price will go down during the next week. Since the US and Canadian markets are closed on Monday, Tuesday should shine some light on the situation.
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