News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • $EURGBP testing weekly lows again, which has kept GBPUSD afloat despite the pick up in the greenback
  • Join @PaulRobinsonFX at 6:00 EST/10:00 GMT for a webinar on becoming a better trader in current markets. Register here:
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here:
  • Long position of Chinese Estate's (0127 HK) in Evergrande drops from 8.15% to 7.96%
  • $AUDNZD short surely the most consensus trade out there - Diverging CB policy path well embedded - 140bps of NZ tightening priced in by end-22 leaves little room for error - Bar any extreme risk aversion, parity is rare - $AUDNZD bottom after RBNZ hikes in Oct? (13/14 again)
  • 💶 Balance of Trade (JUL) Actual: €20.7B Previous: €18.1B
  • Heads Up:💶 Balance of Trade (JUL) due at 09:00 GMT (15min) Previous: €18.1B
  • ECB's Rehn says Long Term Inflation Expectations are below the ECB's target $EUR
  • 🇭🇰 Unemployment Rate (AUG) Actual: 4.7% Previous: 5%
  • Ever wonder if there are other chart types that can be used for technical analysis? HLOC charts are discussed in the following article as well as their pros and cons. Learn more here:
Dow Jones & Crude Oil Forecast: Will a Crude Oil Breakout Boost the Dow?

Dow Jones & Crude Oil Forecast: Will a Crude Oil Breakout Boost the Dow?

Peter Hanks, Strategist

Dow Jones & Crude Oil Price Outlook:

Dow Jones & Crude Oil Forecast: Will a Crude Breakout Boost the Dow?

The Dow Jones trades at record levels once again after recovering from market turbulence in late January. Not to be outdone, crude oil prices have climbed to their highest levels since January 2020. Encouragingly for the Dow, the recent breakout in the fossil fuel should serve as a tailwind for energy stocks and could translate into greater gains for indices with energy exposure.

Crude Oil Price Chart: Daily Time Frame (September 2018 – February 2021)

crude oil price chart

That said, the Dow Jones Industrial Average is not what it once was and its exposure to energy has slowly dwindled in recent years. The fall from grace suffered by energy stocks was acutely exemplified when Exxon Mobil (XOM) was removed from the Industrial Average in August 2020 after holding a spot on the index since 1928. XOM shares have outperformed the broader market in the year-to-date, but this outperformance has not been shared with the Dow Jones.

Dow Jones and Exxon Mobil (XOM) Price Chart: Daily Time Frame (January 2020 – February 2021)

dow jones and exxon mobil xom price chart

With that in mind, traders searching for exposure to energy stocks in the event crude oil looks to climb higher might find tighter correlations in single stocks or the exchange traded funds like XLE.

Dow Jones, Exxon Mobil, USD/CAD Price Chart: Daily Time Frame (January 2020 - February 2021)

dow jones, exxon mobil, usdcad price chart

Further still, USD/CAD typically enjoys an inverse correlation with crude oil, meaning if crude prices continue to rise, the pair may fall under pressure. Combined with the reversal in recent USD strength, USD/CAD might serve as a potential proxy for macro traders looking to ride crude oil strength. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist for

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.