Oil futures have pulled back below $119.00 after ticking $120 on dire forecasts for Gustav to strengthen and approach the oil and gas producing regions of the Gulf of Mexico.
Also helping cap EUR/USD was talk of selling by several central banks in the 1.4810 area. in addition to earlier reports of Chinese selling we’ve also heard reports of sales from the BIS, the central bankers Central bank. The combination of the oil dip and the central bank sales seems to have dealers resigned to the notion of more narrow range trade today.
