Commodity markets have traded sideways in recent weeks, despite global equity markets edging higher. This is concerning given that the two asset classes have been very well correlated in recent months. The key driver of this divergence, in our view, is a resilient US dollar. Greenback strength tends to weigh particularly heavily on commodity markets,… [Read more]
Risk Watchdog has been observing the recent correction in commodity prices with interest. A wave of risk aversion has seen commodities dragged down by weaker equities and a stronger US dollar. Of key concern is the CRB index, which has broken below multi-month support. The CRB index has suffered several short-term corrections in recent months,… [Read more]
The global commodity complex rallied for the most of March, but I question whether this move can turn into a sustained bounce. Indeed, I believe that the rally came on the back of a confluence of short-term factors. However, over the medium term, fundamentals still point towards further weakness for commodities. Given the magnitude of… [Read more]