After setting records above $135 last week oil has eased off slightly, dropping under $130 as the chorus of voices complaining about its debilitating effects grew louder. Throughout Europe, demonstrations over the high price of oil are putting governments under pressure, leading French President Nicolas Sarkozy to call for the suspension of Europe's value-added tax on oil.
U.S. durable goods orders fell in April, but core capital goods orders showed unexpected strength with the best performance in a year and a half.
Still, he believes the near-term outlook for the dollar remains mixed. 'Falling oil prices may not necessarily lead to a stronger dollar, and any resumption of WTI (the benchmark crude traded in New York) upside would again stoke inflation fears, pressuring the dollar,' he added.
