In addition to oil, the euro is tanking as well today.
There’s a good reason for this, and it doesn’t have anything to do with boring/tired headlines about Greece.
As we’ve explained earlier, there’s a real market connection between the euro and oil, and it has to do with the fact that higher oil spurs the ECB to hike rates (euro positive), but the US Federal Reserve usually doesn’t pay attention to oil.
Surging oil puts upward pressure on the euro, and conversely, plunging oil eases the pressure on Trichet to hike.
Thus, oil is sliding today again, and so is the euro, as seen here.