🛢️🔺 Oil Currencies to Benefit On Rally But Not Against The Dollar: Cable FX Macro

• We saw WTI crude oil futures surging for a second consecutive week, the 2.3% advanced followed gains of 7.2%. If Brent crude futures hold gains, they will be posting their second-best month this year

• Commodity currencies like the CAD and NOK are up MTD relative to G10 peers, however, the dollar is outperforming both as it leads the group

• The chart below shows crude oil futures vs our measure of the dollar, Cable FX Macro Dollar Index <.RDDXY>. We have seen positive price action from both energy measures and the USD

• A rise in oil prices is not hurting the dollar as the U.S. now stands as a net exporter, this is not the case for most developed markets. Japan and Europe current accounts are exposed to rises in energy as they are heavy importers

• The greenback is recording gains of around 1.0% vs the yen and the euro so far this month