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| Analysis | Crude oil fell for the fourth consecutive session on Monday trading, hovering near the lowest level in seven weeks, as the drop in U.S. new home sales offset optimism that European leaders will take necessary measures to ease the tensions in markets. Oil for November delivery is currently trading around $78.65 a barrel after recording a high of $80.83 and a low of $77.12. Data from the U.S. showed that new homes sales dropped 2.3% in August, the lowest in six months, compared with the revised 0.3% fall. The grim report added to worries that the slowdown in the world's largest crude consumer is continuing, thereby eroding demand on oil and boosting safety demand. Earlier today, an ECB official said the bank may start buying covered bonds purchases in addition to other measures to boost liquidity, providing a wave of optimism on expectations euro-area officials will respond to the ongoing pressure from the United States and the IMF. This week, the main focus will be on expanding the European rescue fund, where euro area countries are doing votes in their Parliaments to expand the European Financial Stability Facility (EFSF). In the FOREX market, the dollar took advantage of the worries and the drop in new home sales to continue its advance against majors as it became the most favorite safe haven amid the several interventions by the SNB and possible similar actions by the BoJ. The dollar index, which tracks the dollar movements versus a basket of major currencies, edged up to a high of 78.85 compared with the day's opening level of 78.12.
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