Cheap oil is good for the economies of the United States, Europe and Japan and the recent plunge in prices should support the dollar, but for the euro and yen the dynamics are more nuanced.
After markets focused almost exclusively on G10 currencies last week, emerging markets could have their moment in the sun this week. In terms of traditional economic data, the calendar is pretty light.
Just six months ago, money market traders expected the Federal Reserve to raise interest rates by the end of 2013. Now, they see borrowing costs staying at record lows for about three more years as the economic outlook worsens.
Copper traders are the most bullish in almost 11 months on mounting speculation central banks will do more to bolster growth, strengthening demand for metals.
Speculators increased bets on rising gold prices to the highest since March on mounting speculation that the Federal Reserve will expand its record stimulus.
