Trading Forex

The market is moving in a random fashion with no news to trade on and all markets closed.  The EURUSD squeezed up to the high teens  up to the London close, but has moved back down on little volume since.  Banks are using skeleton crews with some market makers starting to widen out the prices.  The movements will be purely random.  Anything can happen. 

- Barons Cover story suggests oil may have peaked.  Cite the decrease in demand due to higher prices, increased production from Saudi Arabia, and tougher talk on the US Dollar which should lower speculative demand.  They suggest if this happens, the price of oil could head back toward $100 per barrel. 

- Saudi Arabia hosted a meeting of oil producer and consumer nations. Saudi King Abdullah suggested that the high price of oil was due to increase speculators, increased consumption by developing countries and high tax by consumer nations.   He said that Saudi Arabia would meet any additional needs in the future but did not give any specific production increases other than the 200,000 barrel per day increase announced last week.

The EURUSD has been trading favorably this morning as the market shrugs off the better than expected Initial Claims Data  and instead focuses on the continued hawkish comments from ECB officials (see earlier post).  The pair is trading at 1.4712 which brings the pair above the 61.8% retracement level (1.4708) of the recent move down (see chart below). 

Chart Courtesy of FXDD Metatrader