falling oil prices that set the stage for the us dollar currency

falling oil prices that set the stage for the us dollar currency recovery

The Feb NYMEX oil contract closed at $48.81 from $46.34, breaking the 20-day moving average to the upside as well as the linreg channel top. This is quite frightening since it was falling oil prices that set the stage for the us dollar currency recovery. Overnight it went to $50.04, not seen since Dec 15, on reduced Russian supply of natural gas to not only the Ukraine, but Southern Europe, too. The FT names Turkey, Bulgaria and Romania. Oil is the alternative. Separately, Bloomberg reports that Kuwait and Qatar plan to cut oil shipments to Asia starting in January, fulfilling the cuts promised at the OPEC meeting on Dec 17.

Bye For Now

Barbara Rockefeller
Foreign Exchange Trading