05-14-2018, 01:54 AM
Oil prices and the U.S. dollar are rallying in tandem—a dynamic that has only occurred 11 times since 1983, and it’s drawing the attention of market participants attempting to assess its significance. West Texas Intermediate crude oil traded on the New York Mercantile Exchange CLM8, -0.11% which is up 12.2% in the past month, according to FactSet data, has shaken off a 3.6% rally in the previously battered dollar, as measured by the ICE U.S. Dollar Index DXY, -0.02% according to FactSet data. Check out the recent chart below depicting the dollar gauge’s move and WTI’s climbs from Bespoke Investment Group:
That tandem rally is unusual, what gives?