The world of commodities is reaching some crucial long-term points. We can see it very well by observing the trend of a currency index that we have created ad hoc. The currencies basket against the US dollar that we have named forex commodity consists of the four most commodity-dependent western currencies. Aud, Cad, Nzd and Nok put together and with the same weight have reached a crucial support that has supported the long-term bull market since 2001. No coincidence, the most important indicator in the commodities market, the CCI index, has a graphic trend quite similar to the Commodity FX; this is why we have reached a crossroad in the world of commodities at the moment. Those who bet on the restart of commodities and wish to lower the volatility of their portfolio should then begin to build a portfolio based on these currencies, as it will certainly get a revaluation as soon as the underlying will begin to recover (Graphic source: Bloomberg).
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