There are a lot of conflicting forces expected to impact currency markets this week. The first was the meeting of oil-producing nations in Doha that analysts believe ended in failure. Beforehand, there was talk of a production cut that would have supported oil prices. Instead, there was no agreement and oil prices fell immediately. If oil weakness holds, the dollar should strengthen reflexively. Amazingly, however, that may not be the largest story of the week.
There is a rumor that China is planning to move on the dollar on the 19th, supported by Russia. There have been similar rumors with date-certain outcomes that came and went without incident. This one could be similar. Continue reading