Oil futures surged back above $100 a barrel Tuesday as traders took their cue from supply concerns. Crossing the psychological level at $100 last week may have helped fuel the rally by triggering automatic computer programs set to buy at certain levels. It seems now to have enough strenght to keep its raise and hit new record high.
The European Central Bank held its main rate steady yesterday. It was expected by many, and it seemed that there will not be cuts in the close future. Trichet was clear on this point, no early cut expected. The ECB's president is fighting against only one enemy, inflation, but he is not considering that the more he fights on that side, the more he loses on European growth. The 2009 growth forecast has been reduced by 0.3%. We are sure that we all are going to pay the price of a slow growth. Euro currency was pushed again high and it was a good opportunity to speculate on its rise.
In England it happened exactly the same as in Euro zone. The Bank of England left its rate unchanged at 5.25%. As a consequence, GBP broke the 2$ barrier for the first time in this year. We expect it to stay above 2$ at least until the Bank's minutes in two weeks time.
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