DX ~ Weekly
What happens next for the US dollar will likely surprise the masses and alter the course of market trends. We are seeing more traditional inter-market correlations emerge (they were temporarily broken by the hyper-inflationary impact of the Russian/Ukrainian war). For instance, over the last 30 days, the stock indices have closed in the opposite direction of the dollar 87% of the time, copper and platinum 87% of the time, and livestock roughly 56% of the time. Conversely, coffee, sugar, and corn are trading in lockstep with the dollar 80% to 85% of the time. Thus, if the dollar bottoms as we believe, the result would likely be lower equities, lower metals, lower livestock, and a few select commodities will be pressured higher (coffee, sugar, corn).