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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

Trade like Super Mario
Trade like Super Mario:
How to leverage off your New Year resolutions (even if they’ve already failed)
 
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For many of us, our hopes for 2017 are about finding financial freedom through the markets and investment programs. And it’s just as easy to be derailed from these plans as it is to skip a gym session or raid the fridge late at night.
But fear not, because we're here to show you that Blue Monday will be a great moment to kick start any life-changing program … and that ‘leveraging’ off key dates in the calendar gives us a greater chance of success.
 
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