MARKETS STILL OUT OF SYNC - May Update.
THE USD, GOLD & COMMODITIES 1. USD Perspective Short to Medium Term Much of the recent volatility in currencies, commodities and equity markets, is all too often blamed on the statements of a Ms Yellen or Mr Draghi, the JCB, the Chinese economic slowdown and of late, the US election dramas. But how do the fortunes of the US dollar affect the rest of the world? Traditionally, the USD is in a close relationship with precious metals and major commodities, as they are predominantly traded and priced in USD. Will that change? What will happen to commodity prices, global markets, the EUR, and the currencies of Asia-Pacific region? USD since August 2015 to end of April 2016 (with enlarged cut-out of the orange oval marked period from April 25); SOURCE: Chartnexus My first chart shows the USD from August 24, 2015 to May 4, 2016. This period is full of meaningful Fibonacci aspects, which is why I am quite confident about my near-term prognosis. To provide a close