What's going on?

The dollar is falling and the commodity prices are reversing trend.

The unemployment rate in the US is the key:

Note that when the unemployment improves, the USD will go up (red). If unemployment rate is worse than expected (green, dissapointment), the USD will dop.

Overlapping the unemployment rate with DXY paints a clearer picture. Sorry in fact the unemployment delta chart should be used to show the difference between sequential month but this is good enough to show the trend.










Now what? Commodity prices will resume its uptrend. All those gold, O&G, metal, plantation related stocks will be the targets for many short-term buyers. If you know why they are going up, you should know when they will go back down. Yes, if US unemployment rate improves or US Fed raise interest rate. That is the time when USD will go up. As for Malaysian stock market, it is now displaying a "rotational play" trend by syndicates. It is an usual trend before CNY although SC may see it as unusual market activity. I do agree with SC Malaysia.

Hope you like this sharing.