ENERGIES
Crude oil is trading slightly better overnight as OPEC mulls another production cut.  The cuts did not work in October as traders are beginning to believe that OPEC has no power to influence the price of crude at all.  Lower fuel demand and the global recession are exerting more pressure on energy prices at this time.

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Jay Norris' Forex Trend Maps, a recap of the Forex markets daily, posted at approximately 4:30 P.M. (CDT). Contact Jay at 1-800-971-2154 or at 312-896-3986.

Click on the link below to view today's charts and hear Jay's analysis.

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The U.S. Dollar fell against most major currencies on Monday as the U.S. Treasury’s move to bailout Citigroup increased trader appetite for risk and reduced demand for the Dollar as a safe haven investment. On Sunday, the U.S. government agreed to lend Citigroup $20 billion to short up its balance sheet while at the same time taking about $306 billion in toxic assets off its books. The break in the Dollar continued throughout the day as U.S. housing data showed that Home Sales declined 3.1 percent to 4.98 million units in October.

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OVERVIEW
Tightening credit markets claimed another victim overnight as BHP Billiton announced it was pulling out of a deal to buy Rio Tinto.  This could be the start of a trend that sees a shutdown in the merger and acquisitions market.  Industrial metal stocks were down on the news dragging down global equity markets and giving investors an excuse to take profits following a two day advance of close to 10%.  Yesterday’s housing report showed the U.S. economy was continuing to weaken.  The key item to notice about yesterday’s action was that global investors are prepared to bury the Dollar.  The government’s rescue of Citigroup just provided the economy with more cash.  This should lead to inflation down the road. 

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