Strong Dollar makes is tough on other markets
US Dollar – Weekly continuous: Surpassed the Primary recover target at 102.25 and making highs not seen for 20 years.
My opinion. Cash commodities can struggle to keep upward momentum when US Dollar is strong. The world is experiencing a financial crisis it has not seen for several decades. The 07/08 recession Primarily hit the US with the Housing market bust and Dollars fled the US to other stronger currencies/assets. US Ag commodities were very volatile in the period but mostly strong with a weak dollar. If EU and Asian markets remain weak, safe haven assets like the Dollar could remain elevated to extremely high…Yet to be determined.
Open interest is/has been low in the commodity space, and we recently witnessed what a liquidity drain out of our markets from the big money can do. Major swings up and down to be expected in the nearby future.
My opinion. Cash commodities can struggle to keep upward momentum when US Dollar is strong. The world is experiencing a financial crisis it has not seen for several decades. The 07/08 recession Primarily hit the US with the Housing market bust and Dollars fled the US to other stronger currencies/assets. US Ag commodities were very volatile in the period but mostly strong with a weak dollar. If EU and Asian markets remain weak, safe haven assets like the Dollar could remain elevated to extremely high…Yet to be determined.
Open interest is/has been low in the commodity space, and we recently witnessed what a liquidity drain out of our markets from the big money can do. Major swings up and down to be expected in the nearby future.
