Intraday Market Thoughts

Archived IMT (2009.11.25)

by Ashraf Laidi
Nov 25, 2009 16:56

USD SELLING NO LONGER TAKING PLACE with the usual advances in oil prices. The inverse correlation between USD index and US crude oil weakened from -0.75 in October to -0.56 in November (1st-25th), while the correlation between EURUSD and crude fell from 0.78 in October to 0.49 in Nov. This could well be a case of oil bulls unable to keep up with USD weakness, especially as the lack of broad follow-up in global equities may not warrant real demand for oil prices to regain its $82.00 highs of the year. Meanwhile, OIL/EURUSD ratio is now below 50.75, further declining from 51.85 when the chart was first posted


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