Dollars, Burning Yen and Commodity Correlation (Beware of GDP Bomb)

05/26/15 12:03PM EDT

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The big move overnight in Japan is taking something that hasn’t been part of the 2015 macro narrative right back into the flow. Yen down -1.1% testing fresh YTD lows vs. USD at 122.87.

The Nikkei? It absolutely loves that, closing at another YTD high of 20,437. It's up +18% YTD.

Dollars, Burning Yen and Commodity Correlation (Beware of GDP Bomb) - Yen cartoon 03.04.2015

On a related note, the U.S. Dollar… It was up +3.1% last week. That took the CRB Index down -2.5% as the 30-day correlation remains quite high at -0.90… A #StrongDollar morning here keeps the commodity correction in play, with Gold and Oil both pulling back to support levels that I would buy/cover ahead of Friday’s U.S. GDP bomb.

Dollars, Burning Yen and Commodity Correlation (Beware of GDP Bomb) - z c4

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