Crude oil is likely to gain further as Brent and WTI crude rose to their highest since September. This follows a drop in US stockpiles, while tensions in West Asia over Syria developments are also propping up the bulls. Brent crude for delivery in August was up at $106.08 a barrel and WTI on NYMEX at $98.50.

Japan's trade deficit rose nearly 10% in May to 993.9 billion yen (nearly $10.5B). Rising costs for imports due to the cheaper yen matched a 10% rebound in exports from a year earlier. A weakening in the yen's value has pushed up costs for imports of crude oil, natural gas and other commodities for this resource-scarce nation, but the deficit in May was bigger than most economists' estimates.

The JPY pairs are now characterized by noteworthy reversals, which give some low-risk selling opportunities. Other majors are either consolidating or retracing. In general, the major outlook is still valid.

EURUSD: The EURUSD is still in a bullish mode, as suggested by the indicators on the chart. The price line at 1.3400 is a forgone conclusion: the pair would soon be trading above it as it goes towards the resistance line at 1.3450. It is suggested that one should only seek to go long.

European car sales hit their lowest level for the month of May in 20 years as the region's recession dragged on. Passenger car sale demand for May dropped by 5.9% on the same month last year in the 27-country European Union to 1.042 million units, the lowest level since May 1993, when sales dropped below 1 million. For the first 5-months of the year, sales dropped 6.8% to 5.07 million.

This morning, most of the leading oil service stocks are advancing higher to start the trading week. Today, the popular and highly followed Market Vectors Oil Services ETF (NYSEARCA:OIH) is trading higher by 0.65 cents to $43.60 a share. Short term traders should watch for intra-day resistance around the $43.65, and $44.04 levels. The daily chart of the OIH is still trading above the important 50-day moving average which keeps the OIH in a strong technical position. There will be very good  daily chart resistance around $46.00 level. 

Crude oil futures prices fell 0.44% to Rs 5638/barrel, a weakening trend in the Indian trade on profit-booking. Indian crude oil for delivery in June shed Rs 25 or 0.44% to Rs 5638/barrel in 5780 lots. Similarly, the oil for July delivery moved down by Rs 24 or 0.42% to Rs 5668/barrel. Trading sentiment eased at the futures trade as crude oil prices declined in Indian trade after investors took profits following last week’s rally triggered by concerns over rising tensions in West Asia.

What will happen with Indian Rupee, its continuously falling from the level at $53 to $59 with out making any normal correction of profit booking. Just recently Indian currency contracted to $59 against the US dollar before few trading sessions. In current scenario, Indian rupee is moving nearer to $57.68 which has shown some correction which is also called as some profit booking. In next, Indian currency is expected to move nearer to $56-57 for some time and may break ranges for higher volatility, but overall it will go above $60 in approx 5-6 months. Let us see which numbers are going to publish from Indian government. Previous horrible Indian data was completely negative for currency.