Dollar Gain Is Oil’s Pain-USD At 4 Year’s High

US economic data is showing strong recovery. Surging US new home sales again signaled a strong economic recovery making USD bullish and strong. Right now USD is standing at 4 year’s high. “The dollar has gone near vertical,” said Imre Speizer, a markets strategist at Westpac Banking Corp. in Auckland. “In the near term, the momentum is very strong. And the economic data has continued to surprise on the upside more often than not.”

The dollar’s gain is also oil’s pain, with the dollar index at a four-year high and Brent crude at a more than two-year low.

The price of Brent oil continued to fall today, hitting its lowest level since June 2012. Evidently, investors are not worried about the prospects of supply disruptions in the Middle East amid the US-led bombings of IS targets in the region. In fact, they appear more worried about the excessive supply of the stuff and also the weaker demand growth.

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