Euro outlook – Dollar parity and the future of oil

Given the beating euro has taken over the last few weeks, analysts have now started talking about exchange parity with the US dollar just as they spoke about euro at 1.2 to a dollar when euro broke the 1.30 barrier. On other fronts the weakness of Australian dollar against its major trading pairs (the US dollar and Yen) does not indicate any near term strength in oil and is a reasonably bleak trading signal for commodities. The only exception to the rule is Gold, which so far has been able to stay steadily above 1200 dollars an ounce.