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Oil Holding Firm at Prospect of Economic Recovery by GoLearn Forex

The Dollar continues to strengthen as global economies show signs of bottoming after surviving the financial crisis that has gripped the markets for the last 2 years.  The DXY closed yesterday's session at 78.25. The NZD yielded the most to the Greenback, giving up .82% while the CAD gained 0.45% as the Canadian economy continues to show signs of strength.

 

Oil has been holding firm as the prospects for an economic recovery will likely generate an increase demand for oil.  Oil advanced $0.68 on the day to close at $74.40.  Gold on the other hand continues to retrace its gains as the Dollar rally continues. Gold yielded $9.40 before closing Tuesday's session at 1,084.

 

Global Equity Markets continued to push higher.  In the U.S the DJIA surged 50.79 points to finish at 10,464.93.  The gains came even as U.S, U.K, and New Zealand GDP figures failed to meet expectations.  The news was offset in the U.S by Existing Home Sales which surprised to the upside. The data docket for today will be significantly lighter.  Canadian GDP figures will print as will BOE Meeting Minutes.  In the U.S, Personal Spending and Consumption Expenditures will publish as will the University of Michigan Confidence Index.  Traders will gauge consumer sentiment as the consumer is the final boost the economy needs. Although Big Board volumes will continue to be light we can expect to see significant price action as the numbers hit the wire.

 

Upcoming Forex Events for December 23, 2009-12-23

 

GBP    MPC Meeting Minutes 

GBP    BBA Mortgage Approvals      Forecast  43.00K  Previous  42.20K

CAD   GDP (MoM)                Forecast    0.30%  Previous  0.40%

USD    New Home Sales        Forecast    439.00K  Previous  430.00K  



Disclosure: EURUSD