Falling of the oil prices below a level of $63 for barrel, strengthened dollar position in a foreign stock exchange against other currencies. At closing on NYMEX March futures for delivery of oil light sweet dropped in the price on 0,23 dollars to $62,55 for barrel.

Despite the growth of oil stocks in the USA – on morning tenders in Singapore oil remained within the limits of a resistance level of $63 for barrel.

At 3:00 GMT March futures for the US crude oil light sweet rose in price on $0.18 up to $62.73 for barrel in comparison with closing in New York $62.55 where during the session the price were down $0.54 to minimum levels, for the last several weeks.

API Institute declared yesterday that crude oil stocks in the USA were down 2,7 million barrels for a week on February, 3rd. Today in its report the Department of Energy informed that crude oil stocks were down 300 thousand barrels. Petroleum stocks were up 2.8 million barrels, according to API data, that also was below the official data - 4.3 million barrels. Distillates stocks were down 2 million barrels, API informed.

The pound sterling positions weakened even more. After unexpectedly weak retail sales data retail price data showed growth of a deflation that makes quite probable the Bank’s of England decision to cut the rate of refinancing on 25 basic points the next meeting of Bank’s Board.

So the rate of Bank of England will be lower for the first time for the last 10 years, than the FRS federal funds rate. And in its turn this will weaken positions of pound sterling even more strongly. Retail prices in shops of the UK fell on0.57 % in January in comparison with January, 2005. The total price index dipped on 0.27 % m/m in January up to 100.39 against 100.97 in January, 2005.

For the first time since August, 2000 the price for food stuffs went down 0.52 % y\y, BRC informed. The prices for nonfoods dipped year over year the 8-th month successively. Nonfood price index makes up 92.96 now against 93.49 in January, 2005.

Expectng the Trade balance and the Treasury budget reports, and also in absence of especially significant news, quotations are within the limits of a sideways.

Let's remind that these reports are expected on Friday, on February, 10th, 2006, at 8-30a.m. ET, at 13-30 GMT - Trade Balance, according to the report of the Census Bureau and the Bureau of Economic Analysis of the US Department of Commerce, data for December, 2005.

The same day, at 02-00 a.m. ET, at 19-00 GMT the Treasury Budget report, U.S. Treasury Department, for January, 2006 takes place.

It is most likely that before these important events the quotation will be within the limits of a sideways currency corridor. Therefore according to yesterday's recommendation, all remains in force.

According to the recommendation on February, 2nd:

“Eurodollar quotations have approached closely to key levels 1,2040-1,2000. Expectation of the further rate increase and positive nonfarm payrolls data enable dollar to press the support levels. There is quite probable correction deepening. Therefore Shorts on euro under these levels with 1 purpose 1,1915 and the perspective purpose 1,1720 are important.

Pound sterling the same levels - Shorts from a support level of 1,7635, 1 purpose - 1,7545, 2 purpose - 1,7415.”        

The purposes on pound sterling have been reached.

On euro, we keep stop in make-out.