In response to one of my posts on the USD, a fellow investor at this forum rightly pointed out that the inverse correlation between USD and Commodities is stronger than between USD and Equities. Charts of USD vs the CRB & DJ World Indices are shown above. Even then, most USD turning points also turned out to be turning points for equities in the past 3 years. Hence, my view that it is a good idea for an Equity trader to keep an eye on the USD direction as well.
Posts
