Unlike the other major currencies, the EUR/USD has not joined in the rally today. For currency traders looking for an explanation, the answer is OIL.
Crude prices have fallen for the third trading day in a row and have even broken below $70 a barrel. Since the beginning of the year, there has been a 70 percent positive correlation between oil prices and the EUR/USD.
Here are the charts to prove it. The first chart is the daily correlation, the second is the hourly.
Photo: GFT Dealbook