The slide in oil seen since yesterday is said to have helped boost the Dollar but the recent adverse weather conditions may hamper any further drop in the price. As a result the Dollar may have elicited all the pre-weekend help it is going to get from the commodity markets.
Lucky for Dollar bulls the US unit has its yield advantage to fall back on. Research notes published today tout the recent break above 4.85% in the US 10-year Treasury yield as the trigger for the latest US unit strength. Into European trading and the Dollar rallied further with EUR/USD easing back to 1.2892 after buying into the 1.29 level was eventually filled. Stops below 1.2890 are still threatened but for the moment the talk of central bank buying is limiting the potential for a run at the current 2007 yearly low at 1.2868 from January 12th.
Looking ahead, the pair will be bid on dips ahead of the US data this afternoon. US data kicks off with the 13:30 GMT release of Durable goods numbers for December followed by the 15:00 GMT unveiling of New Home Sales (also Dec).
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