Inverse Correlation Between Commodities And The Dollar
July 16th, 2010 admin
Monitoring the price of the dollar against other major currencies is very important when it comes to trading or investing in commodities. Since early June, the Dollar Index has fallen about 7 percent, while the commodities index has risen about 6 percent. The dollar and commodities typically trend in opposite directions. … Read Full Post
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It might be safe to say that the risk trade is back on with the commodities. For the month of July, commodities have rallied about 7 percent in the CRB Index(chart below) and many commodities have shot higher in the last week. … Read Full Post
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The Baltic Dry Index has fallen considerably in the last couple weeks, which generally means demand is weakening for commodities. The Baltic Dry Index measures the rates charged for shipping goods around the world. Higher demand usually means shipping higher rates. The rates of the index have fallen from 4,209 on May 26 th to 2,547 on June...
The first half of 2010 was quite volatile for commodities as the overall commodities index lost about 4 percent. The rise in precious metals prices somewhat offset the drop in the energy commodities. There were more losers than winners in the first half. If you follow commodities closely, you should remember there were some wild moves and many...
Commodities dropped about 2 percent on Friday as the dollar index staged a very sharp rally. Gold was the biggest victim as it dropped $58 to close at $1,160 an ounce. The metal commodities were hit the hardest during the day and really skewed the commodity averages, while most other commodities had decent losses. The dollar rally was spurred by...
The U.S. Dollar Index bottomed about two months ago and has put pressure on commodities since that time. The value of the dollar has gained rapidly in the last few weeks as Europe actually appears to be in worse financial shape than us. The rising dollar has caused an unwinding of the “risk trade” where institutions sell dollars and...
The dollar slid as much as 1.1 percent against a basket of six major currencies and touched a two-month low against the euro. Gold historically has moved inversely to the dollar. The metal reached a record $1,266.50 an ounce on June 21 and rallied to
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The United States Commodity Index Fund began trading today on August 10 th . This commodity ETF was created through two Yale professors who highlighted the long-term benefits of investing in commodities in 2004. The fund is based on the index they created to gauge commodity investments since 1959. It will trade similar to a stock under the...
Sugar futures are continuing another impressive rally not too long after the floor fell out of the market earlier in the year. October sugar futures gained 36 points on Monday to close at 18.62 cents a pound. Sugar has rallied about 35 percent off the lows set in early May. … Read Full Post
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The dollar is hated universally and the distaste for it now is at historic highs. Mass psychology usually states that when something is hated so much and that the only logical place for the investment to trend is downwards exactly the opposite occurs and instead it mounts a very strong rally.
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The USDA released their monthly supply and demand figures on Thursday and many commodities rallied as a result. The highlight of the report includes a sharp drop in world wheat production and strong demand numbers for cotton. … Read Full Post
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