The Fed passed on hiking rates, but the lift to most commodity markets off that news was not very impressive, and this suggests that the path of least resistance is likely to remain down.
The recent retrenchment in bean oil, crude oil, sugar, corn, equities, cattle, gold, platinum, palladium and copper as well as significant rallies in Treasuries and the Japanese yen mostly started around March 14th, and some have labeled the period since mid-March as a “crisis.”
While we think the bear case for the global economy is already overstated, more long liquidation selling in crude oil is possible.
The ongoing fear of global deflation just doesn’t fit with most of signals flowing from the marketplace.
Global economic activity remains disappointing, but medicine in the form of another wave of central bank easing, cheaper energy prices and currency exchange windfalls for the weakest areas of the developed world are in place.
The Japanese yen is forecast to dip in value against the South Korean won after having marked gains as of late, Bloomberg reports a technical analysis states.
The Japanese yen was driving toward marking its biggest weekly advance in about two months against the world’s reserve currency on Friday as speculation grew about the monetary unit of the Pacific Rim nation enduring recent losses that were too strong, according to Bloomberg.
The Japanese yen dove toward its lowest value in six months against the world’s reserve currency after negotiators notched a pact over Iran’s nuclear ambitions, Bloomberg reports.
The Japanese yen on Wednesday ceased two consecutive trading sessions of losses against the U.S. dollar as chairman Ben Bernanke with the U.S. Federal Reserve prepares to address reporters following two days of policy meetings, Bloomberg reports.
The gold market should be in demand as a hard currency, but it simply has been pressured by the allocations from investors spreading into the Stock Indexes and many other products. The strength of the US Dollar puts pressure on the gold market while the tapering of the quantitative easing should increase the strength of… Read more.