Oil Prices Continue to Rise, Helped by a Lower U.S. Dollar

Greenback and oil prices

Last week, the U.S. tapped its strategic reserves, and the IEA released oil into the markets. The move temporarily sent oil prices lower, but they have been stubbornly higher recently.

Some of it has to do with speculation that demand could pick up. However, the lower U.S. dollar has something to with it as well. Oil prices and the dollar often move inversely to each other, and because oil prices are denominated in dollars, when the dollar falls, oil prices tend to rise.

With a weaker U.S. dollar expected in forex trading for a while, there will be little check higher oil prices -- even as reserves are tapped.

Oil Prices Continue to Rise, Helped by a Lower U.S. Dollar

Greenback and oil prices

Last week, the U.S. tapped its strategic reserves, and the IEA released oil into the markets. The move temporarily sent oil prices lower, but they have been stubbornly higher recently.

Some of it has to do with speculation that demand could pick up. However, the lower U.S. dollar has something to with it as well. Oil prices and the dollar often move inversely to each other, and because oil prices are denominated in dollars, when the dollar falls, oil prices tend to rise.

With a weaker U.S. dollar expected in forex trading for a while, there will be little check higher oil prices -- even as reserves are tapped.

U.S. Dollar Down in Forex Trading

Greenback lower in currency trading

With all the optimism and risk appetite as a result of expectations of a Greek bailout, it is little surprise that the U.S. dollar is lower in forex trading.

Greenback is down in currency trading on the FX market today, thanks to renewed appetite for risk. The Aussie is gaining as gold prices rise, loonie is getting support from higher oil prices, and the euro is rising as China pledges its support.

Additionally, there is an expectation that soon forex traders will turn their attention to the U.S. economy, which is flagging. Recovery can't seem to take hold, and that is causing concerns about what could help if the world's largest economy can't hack it. It is little surprise that, for now, the U.S. dollar is struggling.

U.S. Dollar Down in Forex Trading

Greenback lower in currency trading

With all the optimism and risk appetite as a result of expectations of a Greek bailout, it is little surprise that the U.S. dollar is lower in forex trading.

Greenback is down in currency trading on the FX market today, thanks to renewed appetite for risk. The Aussie is gaining as gold prices rise, loonie is getting support from higher oil prices, and the euro is rising as China pledges its support.

Additionally, there is an expectation that soon forex traders will turn their attention to the U.S. economy, which is flagging. Recovery can't seem to take hold, and that is causing concerns about what could help if the world's largest economy can't hack it. It is little surprise that, for now, the U.S. dollar is struggling.