The U.S. dollar index / crude oil comparison chart shows the
recent divergences between the two markets.
As the price of the U.S. dollar index has moved 3.5 % higher
from the most recent low set in late-June, the price of spot crude oil which at
times moves inversely to the price of the dollar has moved lower by 13%
A strengthening dollar is generally negative to commodities
priced in the U.S. dollar including crude oil. The rally higher in the
dollar may have further room to run before a top is set which may indicate
further weakness in the crude oil market before a bottom forms in the market.
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