The dollar has grown stronger to start this week, gaining ground against most major currencies and commodities, the Japanese yen, being the prominent exception.

The gold price spot rate is at $1,091, after a Tuesday New York Mercantile Exchange close just below $1,100. The gold rate is well below its all time high of $1,218.25 near the end of 2009.

Oil prices actually climbed a bit Wednesday morning to $75 after a Tuesday New York settle price of $74.71. Investors are waiting for the latest report on US inventory levels. Oil has been kept in check partly based on the firmer dollar, but also based on a lack of growth in oil and gasoline demand by consumers and businesses.

The major European currencies symbolize the affect the dollar has had on its global currency counterparts of late. One Euro is currently worth $1.4036. This is down nearly five pips from its 2010 high above $1.45 on January 11th, and well below the $1.51 level at the start of December.

The British Pound has held up better against the greenback with more narrow up and down range trading. A Pound is currently fetching $1.6183. This is well off the 2009 high over $1.70, but the Pound has shown more resistance against a dollar unwind compared to other currencies.

The current change of direction in the currency market is typical. Currencies tend to trade directionally over a period of time until major economic drivers and catalysts dictated a reversal. The dollar was beaten down so badly for much of 2009 that general sentiment that the economy is improving relative to the global market has prompted speculators to jump out of negative-dollar positions.

There have been some pullbacks in the dollar-positive trend of recent months, but overall, the dollar has been making headway against most major currencies. The yen has been a notable exception as the Japanese economy has been moving somewhat parallel to the US, with similar interest rate policies.

A dollar is back below a 90 yen value. Whichever Central Bank moves to increase rates more quickly is likely to drive direction in the near term for the dollar-yen pair. The Fed appears more likely to act in this manner sooner based on comments from Bank leaders.