Loading ...Which price drives which? Does the dollar strengthening drive down the dollar price of oil primarily and vice versa or does an increase in the dollar price of oil force the dollar index down? Or does neither factor drive the other and what we see is just what simply is, things happen, prices for dollars and oil fluctuate and the two are tied and simply tango with one another essentially as one being?
I think the dollar drives oil, the PM complex and the general stock market. I don’t think oil drives dollars. I think lots of people in the world are in dollars b/c other currencies are weak. I think it’s also important to understand that OPEC and the frackers have the spigots wide open right now. It’s sort of a race to the bottom in oil to shake out the weak. Everyone needs cash to operate. Lastly, I believe derivatives can make the markets give the wrong signals to the little guys. Open to opinions.
but then we have abnormalities like Richard pointed out, how’s come Gold isn’t retreating with a higher dollar right now? They uncouple sometimes. I think they squeeze the players out with a constantly changing battlefield. Here hold this mercury in your hands….what do you see? as it runs through your fingers