Euro and Oil outlook – Trailing correlation between crude oil prices and Euro-USD exchange rates
And here they are. The two graphs that I had promised in my earlier post on trailing correlations on the Euro-USD exchange rate and crude oil prices.
The first with the Euro-USD exchange rate.
The second with oil prices. While the first does not really suggest a relationship, the second raises an interesting point. This is not the first time that oil prices or the Euro has collapsed and correlations remained perfectly stable in 2008 and Euro and Oil prices both took a bath together. However somehow the world is different in April 2010 in that correlations and the Euro-USD exchanged rates have taken a dip but Oil prices have not reacted as much as was expected if correlations had stayed stable.