Oil and gold prices may decline amid expectations for a sharp increase in borrowing costs as the US Treasury’s monthly budget statement shows the largest monthly shortfall since records began nearly 33 years ago.

Commodities - Energy

Oil May Break Support as Monthly US Deficit Hits Record

Crude Oil (WTI) $81.25 -$0.24 -0.29%

Prices have pulled back from resistance at $82.23 to find support at a rising trend line established...

US Dollar Weathers a Rebound in Risk Appetite, But for How Long?
Euro at Impasse versus US Dollar: Further Losses or Sharp Bounce?
Japanese Yen at Risk On Risk Appetite and Expected Monetary Easing
British Pound May Consolidate After Falling to 10-Month Low
Swiss Franc Remains Tied to Trends Driving Other Currencies
Canadian Dollar Eyes Parity with the Dollar as Labor Data Approaches
Australian Dollar Poised to Test Major Highs on S&P 500 Rallies...

US Dollar Outlook Depends on Federal Reserve – What Can We Expect?
Euro Weighed by Growth, Interest Rate and Financial Stability Doubts
Japanese Yen: What Happens when the Carry Tides Change?
British Pound May Rebound But Trend Bias Favors Losses
Swiss Franc Strength Could Return Following SNB Intervention
Canadian Dollar Support May Come From Rising Inflation
Australian Dollar to Succumb to Risk Trends, RBA Minutes
New Zealand Dollar Ekes Out Gains...

The British Pound failed to hold ground during the overnight trade and weakened against the greenback for the fifth day to reach a low of 1.5566, and the currency is likely to face increased volatility over the next 24 hours of trading as the Bank of England is scheduled to release its quarterly inflation report tomorrow at 13:30 GMT.

Talking Points
• Japanese Yen: Down Across the Board
• Pound: Trade Deficit Widens as Imports Jump
• Euro: President Trichet...

It is difficult to forecast where the markets will be in a month or three months when volatility is as high as it is today. However, when measuring the quality of a trend; it is imperative to gauge the fundamentals that will carry the US dollar that far out to better ascertain the stability and duration of the incredible rally that the benchmark currency has carved out since the second half of January.

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