Commodities: Fundamentals paint a positive picture – ANZ

FXStreet Insights Team FXStreet

Commodity markets have become a popular asset class for portfolio investors, just like stocks and bonds. Strategists at ANZ bank analyze commodities outlook.

Falling inventories point to market tightness

Commodity markets have been under pressure in recent time amid a weak economic backdrop. Despite this, there are signs of tightness.

Inventories have always been a good guide to demand; and after a shaky start to the year, are showing signs of tightness across most markets.

There has been a clear drawdown across commodity exchanges and the broader supply chain. However, the trends are more discrete across the energy market. Industrial metals are now at multi-decade low levels which could trigger price rallies amid supply shocks.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.