US Dollars and Commodities
From All Star charts:
We’ve seen a nice little rally in US Dollars over the last couple of weeks. This is something we expected to occur as the Euro set up beautifully for a false breakout.
I love it when that happens. It’s tough to find a better risk/reward
trade in any market. But today, let’s take a look at the implications of
this renewed strength in US Dollars.
Like we always talk about, the negative correlation between US
Dollars and the CRB Index is one of the most reliable correlations out
there. So if this Dollar continues to strengthen, I would expect more
weakness out of the commodities market. Here is a chart of the US Dollar
Index compared to the performance of the CRB Index, which consists of
19 traded commodities:
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