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Forex Trading: Oil down $4.00 and commodity sell off is helping stocks and the dollar

Posted by Greg Michalowski on Thu, 07/17/2008 - 1:49pm in

Forex

Dow up 185.

Oil at 130.76. $130 support holding so far. As a guide for inflation watching, the front Crude Oil contract closed the month of June at around the $140 level. At $130, it would finally represent a break in the energy inflation that has been persistently leading to oversized gains in the CPI adn PPI inflation indicators. Is it too late, however.

EURUSD testing 1.5823 level which is the 50% retracement level of the last move higher. Watching this level. See chart below.