Commodities' prices continue their rally towards new high.

Oil hit yesterday a new high at 104.95 $, pushed by a likely supply cut by OPEC due to a potential oil demand reduction in the close future. We expect it to trade higher again and to move to 107 $ per barrel. A weaker dollar and speculation will manage the rise of crude prices for the next days.

Gold hit a new record level yesterday, again pushed by a weak dollar and by super inflation concerns. It is well known that Gold represents a safe harbour against an inflation storm. It seems now that more and more ships are docking there. The 1000 $ barrier will be forced soon, a weaker dollar will take the gold to a 4 digit figure by the end of the week.

Today the ECB policy makers will meet to decide on whether reduce its main lending rate or not. Everybody expects they will not make any cut, so we are ready to see the dollar at 1.55 vs Euro.

The dollar traded as low as 106.87 Japanese yen before recovering to 107.30 yen during yesterday's session.

The euro lower against the dollar today as markets were waiting for a speech by FED Chairman Ben Bernanke that could give information about further U.S. rate cuts. Euro bought $1.4649 in morning European trading while the British pound was at $1.9642.

Bernanke is scheduled to address the U.S. Congress' House Budget committee about the economy today, with analysts and markets looking for insights into what might be done to help the economy recover from the effects of a credit crisis.

Wall Street is expecting additional Federal Reserve interest rate cuts. The U.S. central bank has been cutting rates three times to 4.25 percent recently.

Lower interest rates can push a country's economy but may have bad effects on its currency as traders transfer money to countries where they can earn higher returns.