The Nymex July futures contract is down another 1.6% and combined with last weeks losses takes the black oil down around 7.5% over the last six sessions. Whilst I am no expert on oil it does appear this weakness has caused today's move lower in other risk trades most notably EUR/USD and AUD/USD. As we are all aware QE2 comes to a close next week and all the excessive commodity gains that were part and parcel of its commencement one would expect will be unwound. As I write oil has recovered 15 cents and guess what - EUR/USD has bounced 10 pips!.
