July 8, 2011
- in Uncategorized by schooloftrade
NonFarm Payrolls drag down crude oil as jobless rates rise
We discussed this in our trade room this morning…
Why did Crude and the US Dollar BOTH drop? Isnt there supposed to be a Negative correlation?
As the US economy slows down, the FEAR is that there will be LESS DEMAND for crude oil.
Less demand on crude comes from the lack of new companies making products, new jobs, new trucks, factories, all using crude oil to ship those products.
Crude drops because of the balance between fear and greed in these markets right now.
Once again, remember it is the perception/fear in these markets responsible for these big moves on Crude Oil and other commodities.
Read the Article Here >>> Oil Tumbles, Trim Gain, as U.S. Jobless Rate Climbsming Weekly
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