Respirate

Just How Correlated Are Oil and Equities?

Good article, Jeff.

How about a similar look at the relationship between the USD and crude oil? The talking heads constantly insist that there's a causal effect between dollar relative movement and crude. (It makes them sound smart to repeat something they've heard.)

I think it could just as well be argued that the higher price of oil negatively affects the US economy, which in turn influences the currency. In any case, it's certainly not a proportional relationship.