Is Falling Demand for Oil Ending Crude Carry Trade?
Jul 28th, 2008 | By Jack Crooks | Category: Featured, Financial NewsThe dollar has taken a tumble from its near a three-week high against the euro, after traders got a return of the jitters over crisis in the US credit markets.
No surprise there. What is surprising, says currency expert Jack Crooks, is that the dollar appears to be becoming less correlated with the price of crude oil. The US currency, after all, didn’t hit all-time lows when crude soared to above $150 per barrel.
In fact, the dollar index rallied from its all-time low when crude was around $104 a barrel as oil prices began their steep climb. Jack says there are three possible explanations…