I promise this will be my last question for a while...
I am wondering, what is the relationship between currencies, eg, the value of the USD, and commodities?
For eg, it seems that when the USD goes up (strengthens), commodities prices weaken? And, when commodities weaken, commodity-related stocks, such as BHP and WPL, also weaken slightly.
Is there any way i can stay ahead of what the USD (and other currencies?) are doing, so that i can keep my eye on commodities and hence keep ahead of the trend in commodities stocks?
It seems like a 'chicken and the egg' question: does the currency change, and therefore influence commodities prices? Or, do commodities prices change and then infuence the value of currencies? I have a feeling that the currency is the primary influence, which influences commodities prices, which therefore then play a big part in how our resources stocks are priced
And i guess i forgot to ask, what primarily dictates the direction of the USD?