08.01.2015 - Indexology: A strong US dollar isn’t bad for all commodities
A strong US dollar is generally bad news for commodities since historically as the US dollar strengthens, goods priced in dollars become more expensive for other currencies. The historical negative relationship between the US dollar and the S&P GSCI is shown below. While the broad based indices are negatively correlated with the U.S. dollar, some commodities are more negatively correlated with the US dollar than others. In the long term, since the inception of each single commodity index, ten commodities have a lower than -0.3 correlation to the US dollar: lead, copper, aluminum, nickel, gold, Kansas wheat, Brent, WTI, unleaded gasoline and gasoil with lead leading the pack with the biggest negative relationship at -0.52...............................................Full Article: Source
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