COMMODITY PRICES IN GENERAL MOVE OPPOSITE TO US DOLLAR

IF BRENT CRUDE WEAKENS THROUGH ITS UPTREND US DOLLAR INDEX GOES UP

Since June last year the oil price has been falling and the US dollar has been strong. Take the fact that there is an oil glut out of the equation there is no denying that strong dollar translates into weak oil price...it follows that most commodities are weak against a strong dollar because prices are dollar denominated. Now we have an interesting situation which you can see in the chart below....the bottom half shows the Brent crude oil price rallying after its big decline and the US dollar index (top half) declining after its big rise.