The dollar’s relationship with commodities was in full force last week. The sharp increase in the price of oil (up more than 10% since April 8) was in stark contrast to the dollar, which fell sharply against its G10 counterparts, as you can see in the chart below.
China exports plunge 15% giving crude oil bulls another reason to be long. With the latest number signaling that China's economy could see its growth fall below 7% and is in desperate need of more stimuli, oil is getting a boost on the expectations of more easing.
Details, just details. Crude oil prices rallied after Iran's Supreme Leader Ayatollah Ali Khamenei and President Rouhani made some comments that make it look like the wood is coming off of the "framework deal."
The last few days were quite encouraging for crude oil bulls as the black gold rallied above two declining resistance lines and the volume during Tuesday’s upswing was high. Is this enough to make the outlook bullish?