The Dollar spike crushed oil prices for a second week in a row. Although the $95 support line broke, crude oil reclaimed it by the end of day Friday.
The inflation rate hit the highest level this year at 9.1%. However, Inflation is a lagging indicator because it measures the previous month's data (June). Remember that gas prices peaked in June, from which oil has come down about 25%.
- The dollar doesn't look to be slowing down any time soon
- The Fed is committed to hiking rates by 50-100 bps
I'm expecting oil to make one more move into trend resistance (~ $102), then descent into new lows. I expect the rest of commodities to follow, all driven by dollar strength.
The inflation rate hit the highest level this year at 9.1%. However, Inflation is a lagging indicator because it measures the previous month's data (June). Remember that gas prices peaked in June, from which oil has come down about 25%.
- The dollar doesn't look to be slowing down any time soon
- The Fed is committed to hiking rates by 50-100 bps
I'm expecting oil to make one more move into trend resistance (~ $102), then descent into new lows. I expect the rest of commodities to follow, all driven by dollar strength.
