InvesTech - Chart of the Week - 07/12/10
Charts courtesy of James Stack InvesTech Research

Crude oil prices have strengthened on the back of improved investor optimism and lower inventory levels. However, prices continue to move within our $60 to $85 target range. Over coming months, the direction of crude prices will continue to be impacted by the pace of the global economic growth. Stay tuned for updates.
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The U.S. dollar remains in an uptrend as investors await the start of earnings season. Better than expected earnings results within the U.S., along with continued concerns about European financial “stress testing,” could help strengthen the dollar going forward. As we’ve said before, a firm U.S. dollar benefits the U.S. economy as it doesn’t force the Federal Reserve to tighten monetary policy sooner than they otherwise might. We’ll continue to watch this key economic indicator closely in the months ahead.


