Crude oil shows a tight correlation with many currency pairs for three reasons. First, the contract is quoted in U.S. dollars so pricing changes have an immediate impact on related crosses. Second, high dependence on crude oil exports levers national economies to uptrends and downtrends in the energy markets. And third, collapsing crude oil prices trigger sympathetic declines in industrial commodities, raising the threat of worldwide deflation, forcing currency pairs to reprice relationships.
IMO its a trigger for Tradfi and Crypto caused their not pricing the real economy in since years. Its a risk on Bias.
Dollar and Oil declining is bullish.
IMO its a trigger for Tradfi and Crypto caused their not pricing the real economy in since years. Its a risk on Bias.
Dollar and Oil declining is bullish.