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Crude Oil & the Dollar Print
Written by Site admin   
Sunday, 29 January 2017 19:44

Crude Oil and the US Dollar have a long term correlation, it's inverse, so as the Dollar goes up, Oil goes down.

Since Trumps election we've had a break out and bull run in the Dollar and, if as seems likely, there will be a series of US interest rate rises this year, there's more strength to come. So, if the correlation is inverse and the Dollar rises, Crude Oil should fall, right?

WTIDXYJan17

On this chart I inverted the DXY, in red, so withe the correlation they should both be running in the same direction. Problem is, the correlation broke last May. Since then they've moved opposite the long term correlation and have, this month, started to converge again. As the arrows there should be much more of this to come. Either Crude falls or the Dollar strengthens.

 

From the blog

Is this a scam?

Is this a scam?

Do you receive cold calls from 'brokers', binary offers and the latest alternative investment? I do, frequently. Once our name is on a share register or a broker leaves taking client information to his next billet, we are seen as fair game.

It used to be Land Banking until the scammers were run out of town. Alternative investments - are still on very fertile ground. The frequency of calls I get has slowed a little but rarely a week goes by without three or four calls that usually start with: "I recently sent you some information...."

My latest call was a little different.

Dan from New York Law Specialists (NYLS) called.

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