With no end in sight for US Dollar declines, OPEC are considering an alternative to the US Dollar for quoting Oil prices on the world market. My thoughts are that the likely choice would be the Euro. But large Oil exporters such as CAD could be an alternative. In my opinion the Euro would have to be favoured due to it’s vast trading volume, particularly against the USD. EURUSD being the most traded currency pair on the Interbank network. To read more on this issue see this article on time.com.

It will be interesting to see if this happens, and if in turn other commodities such as Gold and Silver follow suit and quote prices in currencies other than the US Dollar. Will this cause the USD to consolidate and stabalise or would such a huge vote of no confidence cause yet further USD depreiciation?… only time will tell! Interestingly the EURUSD has been in a tight range this past few weeks, as the focus has been on JPY cross carry trades.

For detailed technical analyses on Gold commodities have a look at Goldstockprophet, an excellent resource in my view. Even for non-commodity traders, watching Gold is useful due to pairs such as AUDUSD which tend to move in-line with current Gold prices.