USD was seen to be weak again on Monday morning mainly because of the fact that the G20 meeting failed to reach any agreement over the recent currency tension. At 0344 GMT, it was trading at $1.4026/Euro. As a result of this weakening of the USD the crude oil and gold prices have started moving up. Oil for December delivery was trading at $82.47/barrel at 0409 GMT, in the Globex e-session, and was $0.78 above its Friday’s closing price. While gold for December delivery was trading at $1,339.10 per troy ounce at 0358 GMT and was $14 above its Friday’s closing price.
So now what shall we expect in today’s trading session. We believe that the dollar should be staying weak but it won’t be going down remarkably as we believe that the market has already weakened the dollar considerably. We also believe that the market is currently looking forward to the FOMC’s meeting early next month which will most likely be taking some steps on QE2.