Dollar will recover in 4Q, commodities down according to Forex.com

Wed, Oct 7 2009, 11:11 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) – The Greenback has been under pressure in the last weeks against the rest of the majors, currently the USD/JPY is testing the 88.00 level, first time since January 2009, extending its decline from 97.77 high reached early August. GBP/USD has been testing 1.5800 during the last week and EUR/USD trades higher after bouncing at 1.4480 the October 1st to trade above 1.4750.

The gold's rally is pushing down the Dollar, the recent increase in gold value, which has launched it to levels close to $1,050/oz, has fueled commodity pairs and AUD/USD is trading at 13-months high at 0.8950, as well as NZD/USD, 13-month high at 0.7395. USD/CAD is currently trading at 1-year low levels close to 1.0525.

Brian Dolan, Chief currency strategist at Forex.com, comments: “politically sensitive levels and that further weakness poses a systemic threat to the global recovery, hence is unlikely to happen.” and add “A sharply weaker dollar has the potential to send commodity prices soaring, which would undermine personal consumption, key to the global rebound”.

Dolan Expects that commodities will decline in the 4Q, launching higher the Dollar: “Gold prices will be setback, oil prices to decline, with WTI crude oil at $55/barrel”. Forex.com sees EUR/USD down to 1.37/38, USD/JPY 96./98 and oil barrel trading at $55/barrel.

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