Soaring Dollar, Plunging Oil, Crummy Global Growth | Wolf Street.
This chart juxtaposes the price of Brent crude oil and the US Dollar Index (the outdated currency basket composed of the euro, yen, UK pound, Canadian dollar, Swiss franc, and Swedish krona). As the dollar has soared, the price of Brent crude in dollars has plunged.
Or we might say that the euro has dropped and the yen has plunged for reasons of their own, including their central banks’ commitment to a total currency war. So the hapless consumers in Japan won’t even be able to benefit at the pump from the plunge in the price of oil, as we’re doing in the US. Thanks to the Bank of Japan’s yen-destruction policies, they have to pay for it with their rapidly shrinking yen.
It gives us a near-perfect mirror image of the price of Brent and the Dollar Index:
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