Summary
Commodities have had a wild ride in the past decade, from record heights in the summer of 2008 followed by the steepest plunge on record in the financial crash. Recovery through 2011 was succeeded by a long decline that has left the Bloomberg Commodity index at its lowest point since April 2002. The index closed on Thursday, July 23rd 7.5% lower than it was at the depth of the last recession. Traditionally commodity prices are the indicators for the revolutions of the business cycle. But in the past 15 years and particularly in the era of central bank zero interest rates they have become a vehicle for trading profits and returns unavailable in other markets. Does the precipitous fall in commodity prices in the past four years predict a coming contraction in demand and recession, is it the result of the withdrawal of trading capital from markets as rates begin to rise, or is it the residue of over investment in production from a decade of artificially low interest rates? Join us for an examination of the commodity market in flux.Latest Live Videos
Editors’ Picks
EUR/USD consolidates recovery below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery but remains below 1.0700 in early Europe on Thursday. The US Dollar holds its corrective decline amid a stabilizing market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD advances toward 1.2500 on weaker US Dollar
GBP/USD is extending recovery gains toward 1.2500 in the European morning on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price is defending support at $1.80 as multiple technical indicators flash bearish. 21.67 million MANTA tokens worth $44 million are due to flood markets in a cliff unlock on Thursday.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.