I have written my own piece on How Oil Prices Impact the U.S. Dollar but Jens Nordvig of Nomura has an equally thorough take that is worth reading:
What does the spike in oil prices mean for the dollar?
Recent memories suggest that higher oil prices are bad news for the dollar. First, we have been [...]

Posted in 2011 dollar forecast, Federal Reserve, Oil, dollar rally, forex blog, oil dollar, oil record high 2 Comments »

Oil prices are on the rise and everyone is talking about the possibility of $100 oil. Right now, the rise in oil is accompanied by a rise in the U.S. dollar but will this relationship last? Taking a look back at the two prominent oil shocks of the past four decades (1973 and 1979) [...]

Posted in Oil, forex blog, oil dollar, oil record high 5 Comments »

The US dollar appears to be unfazed by this morning’s mixed economic data. An improvement in consumer confidence has failed to help the dollar while the weaker news has pretty much been baked into the markets.
Christmas and New Years week is a time when traders are more focused on seeing family than making [...]

Posted in Crude Oil Prices, Forex News, Oil, US Dollar, US Economy, consumer confidence, consumer spending, dollar earnings, dollar recession, forex blog, gas prices, oil dollar, weak dollar earnings 5 Comments »

I was in New Jersey this weekend and was amazed to see gas prices at $1.89 a gallon! Sometimes reality doesn’t set in until you venture outside of the Big Apple because at the Mobile Station on the corner of the West Side Highway and Canal Street in NY, a gallon is still selling [...]

Posted in Forex, Forex News, Oil, forex blog, gas prices, oil dollar 1 Comment »

The type of moves that we have seen in the currency market during the Asian and European trading sessions are typically what we see in a quarter or a half year. USD/JPY has fallen 5 percent, AUD/USD is down more than 8.5 percent while the NZD/USD is down 7 percent. The sell-off in [...]

Posted in Bank of Japan, British Pound, Canadian Dollar, Carry Trades, Dow Futures Carry Trades, ECB, FX Radio, Fed Rate Cut, Federal Reserve, Forex News, Forex Podcast, Japanese Yen, Oil, US Dollar, US Economy, dollar intervention, dow 1907, eur/usd, euro, forex blog, oil dollar 2 Comments »