Oil is telling you that there's lower inflation numbers to come shorter-term. This + today's employment data, point to easier conditions for risk assets over the coming quarter.
If you navigated the past two months conserving capital, well done... it should get easier from here.
Core services inflation is trending higher.
I know this month on month print is pretty good. But one point doesn’t make a trend.
And the trend over the past six months is heading in the wrong direction.
That’s not the end of the world but I’d expect this situation to delay…
$BTC $DXY $CL $CNY
The dollar's (green) been correlated to oil (white) for most of 2023.
Oil is a primary driver of inflation and subsequently FED rates.
With the U.S.A. being the worlds number one exporter of oil, I expect this trend to continue.