Here is look at the USD and the agro commodities in the wake of current high inflationary pressures and the talks of QE 3. I think the following pictures should say it all.
Performance of asset classes over last one month:
USD index is nearing support. If QE 2 comes around we can look at more weakness here and consequently higher asset prices. The commodities are turning up. The lower USD can push EMs in a high inflation spiral.
Agro Commodities are moving up: (also additional chart attached).
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