URL has been copied successfully!
Amid ongoing geopolitical tensions, the U.S. Dollar and oil prices are demonstrating an unusual correlation.
Rare Alignment In Dollar, Oil Prices
This rare alignment has reached a 60-day correlation of 0.55 between Brent crude oil prices and the Bloomberg Dollar Spot Index, marking the highest level since the index’s inception in 2005, according to Kobeissi Letter.
This atypical positive correlation emerged in early March, coinciding with the beginning of the Iran war, and has persisted since.
Typically, these financial indicators move inversely because oil is globally priced in US Dollars. A stronger US Dollar generally makes crude oil pricier for international buyers, reducing demand, according to Kobeissi Letter.
Please follow us:
This post was originally published here
