The reaction of copper in recent days has coincided with a similar reaction of the Asian Index as we explained in recent weekly reports. And we can also understand that Asian currencies are closely linked to the commodity cycle thanks to the long-term chart of the basket of Asian currencies. There is no doubt that these evaluations are intriguing. The bull market started in 1997 was placed on a crucial support, 2 negative standard deviations from the regression line and wave C equal to wave A. The reaction is comforting even if, as in previous primary bottoms, a return to the low is to be estimated before a final restart. Who was waiting for "cheap" evaluations of the Asian currencies should buy here. However, there is an element that should never be forgotten. These indices are an expression of the exchange ratio between dollar and Asian currencies, then a re-pricing of the Euro on the greenback could partially cancel the desired rebound (Graphic source: Bloomberg).
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