The USD witnessed a steady depreciation against most of its major currency counterparts during the morning trading session. The Dollar is currently trading lower against the GBP by nearly 50 pips at 1.6330. It is also trading lower against the CHF and JPY, as investors remain wary of making big bets in favor of the Dollar these days.
Crude Oil Prices have been steadily recovering from a plunge during the early trading hours when prices reached a low of $71.51 a barrel yesterday, slowly reaching back to the $73 level. However, as was evidenced in the past few days, Oil has great difficulty supporting prices over $74, despite a weak dollar and equity gains; therefore, trading is expected to remain volatile above and below the $74 price range as the market continues to search for the true value of Crude Oil.
The release of the U.S Personal Spending and Revised UoM Consumer Sentiment at 12:30 GMT and 13:55 GMT respectively, is likely to set the tone for the Dollar's direction in today's trading. Better-than-expected results may help the Dollar recover some of early trading losses against some of its crosses such as the GBP. On the other hand, if the results turn out to be in line with forecasts, then the Dollar may record a fairly bearish session in today's trading.