Strategists from Deutsche Bank believes that a further rise in oil prices will further enhance a pair of Euro / dollar. According to the bank, the correlation between oil and this pair is extremely high. The decline in the dollar generally leads to an increase in U.S. currency-denominated oil prices. By contrast, the rise in oil prices has a negative pressure on the dollar, due to the fact that exporters invest more in European currencies.
Tuesday, May 26, 2009
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