According to economic common sense, the dollar is negatively correlated with the commodity. Crude oil (commodities) are now priced in dollars, the dollar fell, the natural rise in commodities. In the first half of this year, a substantial rebound in commodity prices, and the sharp decline in the dollar close relationship. Now the question is, should the economy of the United States be stronger, should goods rise or fall? (the U.S. economy is stronger, the dollar should be strong)
Crude oil is a commodity priced in dollars, the dollar index fell, equal to the price of crude oil. The United States economy is strong, the dollar is certainly strong, then for commodities and crude oil, it should be analyzed from two aspects. From the perspective of supply and demand, if the United States economy is good, OK U.S. dollars rose, the economy is bound to bring material gains. But in this case,1 if the demand for crude oil also increases, then the price of crude oil will fall2 if the demand for crude oil production does not increase, then the price of crude oil will certainly rise. So when the economy is strong, it should be combined with other aspects of the analysis of the news can be a market trend.
The dollar index is the cause of crude oil price fluctuations, which means that in time order, the dollar index is a leading indicator of crude oil prices.
Crude oil in dollarsCrude oil and the dollar are two of the world's weaponsThere is a correlation between the crude oil price and the U.S. dollar index, and on the whole, there is a negative correlation between the two shifts, but in the short term there may be a positive correlation.
