The Euro and Commodity Prices

This Great Graphic was constructed on Bloomberg.  It shows the CRB commodity index (white line) and the euro (yellow line).   The fit here looks better than what many consider to be commodity currencies, like the Australian and Canadian dollar. 

Commodities The Euro and Commodity Prices yen and cry

The likely explanations is not going to be a causal one either, as one might think of for the commodity currencies, via a negative terms of trade shock. Instead one channel of contagion is the potential policy response to falling commodity prices.  This will heighten the risk of deflation in euro area, and would push the ECB into more aggressive easing.