With the US Dollar advancing on the outlook for the Federal Reserve to increase interest-rates next year, the commodity futures markets have plummeted to their lowest levels since the very beginning of the year. Markets that have sent the commodity index lower include nickel, Brent crude oil, and corn (of all markets).
In the meantime, the US Dollar has climbed to a 14-month against 10 other high-profile currencies it is compared against, as reports later this week are expected to show retail sales improving and jobless claims dropping. Later next week Federal Reserve policy makers meet to discuss the dollar’s gain and its effect on domestic commodity prices rising compared to other currencies.
Most of our commodity futures markets we trade are in choppy to down-trending trends. However, choppy commodity futures markets lead to breakouts in one direction, or another, and that is what I am concentrating on catching at this slow time.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.