{"id":12294,"date":"2010-10-11T10:14:22","date_gmt":"2010-10-11T08:14:22","guid":{"rendered":"http:\/\/bontrade.org\/blog49\/12294\/brent-oil-price-firm-at-84-eyes-on-fed-and-us-dollar\/"},"modified":"2010-10-11T10:14:22","modified_gmt":"2010-10-11T08:14:22","slug":"brent-oil-price-firm-at-84-eyes-on-fed-and-us-dollar","status":"publish","type":"post","link":"https:\/\/bontrade.org\/blog49\/12294\/brent-oil-price-firm-at-84-eyes-on-fed-and-us-dollar\/","title":{"rendered":"Brent oil price firm at $84, eyes on Fed and US dollar"},"content":{"rendered":"

Brent oil prices open the week trading firm around $84 a barrel and investors are watching the Fed’s next moves in US money supply which would affect the US dollar on currency markets.<\/p>\n

In London, Brent crude oil futures for November 2010 delivery was trading at $84.13, 09.00 GMT this morning on the ICE Futures Exchange.<\/p>\n

Asian stocks rose and the US dollar weakened after economic data reinforced expectations the Federal Reserve will pump more money into the US economy to keep it afloat.<\/p>\n

Money Printing at $65 Billion Per Month<\/strong><\/p>\n

The US Federal Reserve may buy as much as $65 billion in US treasuries per month as it attempts to stem job losses, Mansoor Mohi-uddin, head of global currency strategy at UBS AG, wrote today.<\/p>\n

\u201cMany are now concluding that the Fed will do more quantitative easing. The other deliberate aspect to this policy is to increase the amount of dollars in circulation, and hence, lower the external value of the US dollar.” commented Peter Jolly at the National Australia Bank.<\/p>\n

Commodity Prices and the US Dollar<\/strong><\/p>\n

Both Brent and WTI oil futures will see gains in trading if the Fed step on the peddle and start their latest money printing exercise. Recent gains in gold and silver prices are a good indication of how commodity prices will gain as the US dollar looses ground.<\/p>\n

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