The DXY has been the death star for emerging currencies and commodities, but the actual extent of the move has been relatively mild so far.

We have only seen the dollar index (quote) climb 3.5% from its late April low of about 73.

But this “minor” bounce has created all kinds of havoc for commodity markets and the emerging world. This 3.5% is where the stress in the markets has come from — unless, of course, it is only a symptom of something else.

The head fakes have been endless throughout May and June, but the chart does not lie. DXY is building on higher bases to consolidate its recent gains.

When it does, we should expect the dollar to move higher.

Take a look at the recent action on long dollar funds like the PowerShares DB US Dollar Index Bullish ETF (NYSE:UUP), for example:

Written By Tim Seymour From Emerging Money

Emerging Money provides insightful and timely information about the increasingly important world of Emerging Market investments. CNBC Emerging Markets Contributor Tim Seymour leads the team of Emerging Money to bring you cutting edge global news and analysis.

About Tim Seymour: Tim is a founder of Emerging Money. He is a founder and Managing Partner at Seygem Asset Management, and The Emerging Markets Contributor to CNBC. Seygem Asset Management focuses on investing throughout the global emerging markets asset class. With a view that emerging and developing economies will continue to outpace the economic growth and advancement of developed economies, Seymour has devoted a career to investing in the dominant markets of tomorrow, today. Seymour’s career has included significant experience in both alternative asset management (hedge funds) and capital markets, having launched two hedge funds, and built the largest Russian broker dealer in the USA. Seymour started his career at UBS, focusing on international credit (cash, swaps, forex) in a specialized hedge fund group (New York). Seymour completed the firm’s training program after graduating with an MBA in international finance from Fordham University. Seymour received his undergraduate degree at Georgetown University.