Commodity Daily News

Spot Crude Oil Rises Despite Stronger USD

The price of spot crude oil was higher on the day despite USD gains. The catalyst for the move higher was positive economic data from the US. Both retail sales and the Empire State Manufacturing survey came in well above consensus forecasts. Another driver for the commodity gains may be expectations for additional monetary policy stimulus by the Fed (QE3). Spot crude oil prices have risen almost 33% since putting in a low in October. Perhaps the crude oil market expects an improved US economy?

It is rare to see crude prices rising while the USD is strengthening as there is typically a negative correlation between the two assets. Traders should be eyeing the psychologically important $100 mark. Spot crude oil hasn't traded at a level this high since July. For additional technical analysis please see the Wild Card section in today's FOREXYARD Daily Analysis.