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2 Dec 2014
Commodities bounce back – MP
FXStreet (Barcelona) - Alfonso Esparza, Senior Currency Strategist at MarketPulse, notes that Commodities recover as lower prices drove bargain buys.
Key Quotes
“Commodities bounced back from heavy losses after touching multi year lows. Higher inventories and lower expected demand have taken their toll as energy, metals and food are having a year to forget.”
“Brent fell lower than $70 only to get back above after price conscious buyers sensed an opportunity to stock up on energy. Gold saw big jump on Monday with over 3 percent gains.”
“The USD has gotten a boost after the Fed first announced and then followed through on the end of its quantitative easing program in the Fall spelling lower prices for USD denominated commodities.”
“Friday’s NFP can validate the view of the Fed on the state of the U.S. economy and drive commodities lower, specially if demand from China, Europe and Japan continues to be softer.”
Key Quotes
“Commodities bounced back from heavy losses after touching multi year lows. Higher inventories and lower expected demand have taken their toll as energy, metals and food are having a year to forget.”
“Brent fell lower than $70 only to get back above after price conscious buyers sensed an opportunity to stock up on energy. Gold saw big jump on Monday with over 3 percent gains.”
“The USD has gotten a boost after the Fed first announced and then followed through on the end of its quantitative easing program in the Fall spelling lower prices for USD denominated commodities.”
“Friday’s NFP can validate the view of the Fed on the state of the U.S. economy and drive commodities lower, specially if demand from China, Europe and Japan continues to be softer.”