Dollar-Oil link might not hold good in one direction till the picture
of QE gets clearer. Till then we might see oil selling down on a
Dollar surge but we might find it a little reluctant to go up on a
Dollar decline. Reason is clear- Risk postponement. The risky money
might want to wait a little longer before jumping on to a commodity
whose fundamentals don't properly justify its belligerence.
It happened yesterday; Dollar fell more then it rose the day before.
Aussie Dollar rose in accordance but oil had a tiny red candle. But
look at today's performance. Oil is weak on a strengthening Dollar.
We are just a very few days from the time when the picture will get
clearer on how much more money the Fed is going to put in the economy.
As it happened earlier, the money is bound to find short term
investment opportunities in the market and oil is a favorite
destination of such money.
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