InvesTech - Chart of the Week - 10/04/10
Charts courtesy of James Stack InvesTech Research

Crude oil prices moved up strongly last week on a weaker U.S. dollar and positive economic news out of China. Prices remain within our target range of $60 to $85. Over coming months, the direction of crude prices will continue to be impacted by the expected pace of the global economic growth. Stay tuned for updates.

The U.S. dollar pulled back once again last week on slow growth concerns. We note, however, that the U.S. dollar is still well above 2009 lows. This will continue to benefit the U.S. economy going forward because the Federal Reserve won’t be forced to tighten monetary policy sooner than expected. We’ll continue to watch this key economic indicator closely in the months ahead.


