Few people asked me if the stregthening dollar can push down oil price?
(Now we are waiting for a stronger dollar in the upcoming weeks...)
I've set the US Dollar Index and USOIL on the same chart.
If the dollar has an effect on oil price they should move to the opposite direction:
stronger dollar - declining oil price and weaker dollar higher oil price (red boxes)
If the dollar has no effect on oil price they are moving to the same direction.(higher oil price with strengthening dollar and lower oil price with weakening dollar) green boxes.
So we can say that oil can go higher even with the strenthening dollar.
(Now we are waiting for a stronger dollar in the upcoming weeks...)
I've set the US Dollar Index and USOIL on the same chart.
If the dollar has an effect on oil price they should move to the opposite direction:
stronger dollar - declining oil price and weaker dollar higher oil price (red boxes)
If the dollar has no effect on oil price they are moving to the same direction.(higher oil price with strengthening dollar and lower oil price with weakening dollar) green boxes.
So we can say that oil can go higher even with the strenthening dollar.