The Said Correlation Between USD and Crude Prices

Commented by Kathy Lien, Crude Crushes the Dollar

• The correlation between crude prices and the US Dollar has been greater than 70 percent since the beginning of the year. This correlation is evident in the following chart of oil prices and the USD/EUR. The sharp drop in crude prices single handedly triggered the sharp dollar rally between July and mid August. Now that oil prices are creeping higher once again, it would only make sense to see the US dollar slip as well.