Us Dollar Worth and Oil Price (III)

Us Dollar Worth and Oil Price (III)

In two previous part we understand how and why oil prices will change and what are the effected function on oil price.

In a history there is been a nice consistent correlation between oil and Us dollar index, when Dollar index go up oil price would fall down and vice versa.

But today you can’t see reasonable correlation between oil and USD Index

Let’s see by compare 2 chart:

I think the chart is clear to understand if you compare both chart you will see very good correlation now check revers picture please:

You can see good correlation in long time frame between oil price and USD Index but now a day we can’t see good correlation between these symbols:

If you look carefully you can see reverse correlation some time but you can’t count on it.

In some sources expert wrote that because USA oil import decreased from 2008 till now this has significantly reduced the correlation between commodities and the US dollar.

Is it possible to found any strategy to earn profit from this knowledge?

My answer is no, because nowadays USA oil import decreased we can’t focus on USD index and oil price then we should found some country currencies that oil is an important commodity in their economy.

Have a good trade.

Forex Education, Oil Price, US Dollar