OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: Near-term commodity prices look to rise – NAB

Once again, movements in commodity prices have been dominated by events in China and growing speculation over the timed withdrawal of QE stimulus by the US Fed. With market participants on the sidelines throughout most of February due to many of the Asian economies celebrating the Lunar New Year, prices of most of the commodities were relatively steady over the first half of the month, although most industrial commodities prices have pulled back a little more recently.

With improving economic conditions causing a shift in asset holding preferences towards riskier assets and away from gold, the price of gold has experienced its longest run of monthly consecutive price falls in 16 years.

According to the NAB Analyst Team, “Concerns over the likely impact the recently imposed ‘sequester’ will have on the US economy as well as future impacts of fiscal resolutions will continue to influence markets over coming months. Other factors, some of which are temporary in nature (e.g. cold weather, floods and cyclones), are likely to boost near-term prices. In the medium to longer-term, however, prices in most markets will generally ease as production begins to ramp up.”

Fundamental Afternoon Wrap: Euro PMIs and Central Bank meets in focus

This afternoon institutional report reflects market mood today, with focus falling on the key central bank meetings later in the week and the stablising European services PMIs today. There is a feeling that absent sudden Italian developments, EUR/USD may struggle to decline much further, while in the UK the shock of Manufacturing PMIs was offset by today's numbers.
Read more Previous

Forex: USD/CHF rides back to daily highs

The USD/CHF went back to its highs right after the publication of US ISM non-manufacturing PMI. There is a broader demand for the greenback once investors noticed stronger non-manufacturing figures in the US in February instead of the expected drop to 55.0. Data rose from 55.2 to 56.0. The USD/CHF is back above 0.9420.
Read more Next
Start livechat