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Global stock markets are falling and most of them are in "bear" trend. But there is something new with commodity and currency prices. We can see sinking crude oil price and rebound for US dollar. Currency turnaround has started 1 month ago. Strengthening US dollar sent all currency ETFs to negative.

name	ticker	monthly

PowerShares DB US Dollar Index Bullish Fund	(UUP)	5.8%
CurrencyShares Japanese Yen Trust ETF	(FXY)	-2.5%
CurrencyShares Canadian Dollar Trust ETF	(FXC)	-3.7%
PowerShares DB G10 Currency Harvest Fund	(DBV)	-4.0%
CurrencyShares Swedish Krona Trust ETF	(FXS)	-5.2%
CurrencyShares Euro Trust ETF	(FXE)	-6.1%
CurrencyShares Swiss Franc Trust ETF	(FXF)	-6.2%
CurrencyShares British Pound Trust ETF	(FXB)	-6.7%
CurrencyShares Australian Dollar Trust ETF	(FXA)	-10.3%

As you can see US dollar ETF has gained almost 6% in last month. The most averse currency against dollar strength seems to be Japanese Yen which lost only 2.5%. This slight drop is due to positive monthly trend with broad stock markets indices. During the same time Dow Jones Industrial Average increased by 0.3% and Nasdaq Composite by 4.8%. Yen is generally called is as a hedging tool against broad stock market trend with inverse correlation. Based on empirical data the highest correlation is with broad US indices (S&P500, Nasdaq Comp. and Dow Jones Ind.) which is -0.95.

Related tickers: (UUP), (FXY), (FXC), (DBV), (FXS), (FXE), (FXF), (FXB), (FXA), (DJIA), (SPY), (QQQQ)

Japanese Yen: Hedging against falling stock markets.

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