Tuesday markets the crude oil prices slamming down, after the latest volatility against the stronger US dollar and a possible rising US shale result.
US dollar reached the highest one-month level against other major currencies. Dollar seems to be a powerful indicator of the possible lower crude prices. If dollar continues its strong rise, the oil price will likely experience some serious volatility on the way.
Followed by positive commentary by Federal Reserve Chair Janet Yellen on interest rates and US economy, dollar rose up to an eight-year high against Yen on Tuesday.
The dollar reached 0.6% at 122.27 after hitting 122.365, its highest numbers since July 2007.
Greece is on the verge to default on the loan compensations due next week to the International Monetary Fund. According to the official government statement, without the repayment of the load, it won’t be able to pay wages and pensions. The Greece-linked instability dragged Euro lower down.
Today dollar continues to rise more than 1% against the major and went over $1.09 per euro for the first time in the whole month. After the weekend, EUR fell to $1.0885, down 0.8%.
Overall, quiet economic calendar in European region, traders are looking towards US news line. All eyes are on US durable goods with the expected fall of 0.5% after 4% rise last month. Durable Goods Orders and New Home Sales, together with Consumer Confidence report are due.