Commodity slump spoils Christmas rally

December 8, 2015

Further weakness in commodity prices is unsettling investors during this historically very bullish month for equity markets. December usually sees indices rally as Christmas cheer engulfs investors and half an eye looks into the crystal ball for what might be in store in the year ahead, however this time the future looks murky with commodities continuing their downward spiral. Nymex crude has been especially in focus as it smashed below the $40 a barrel mark yesterday and we’re now back to the lows of 2008/09 at the height of the financial crisis. These levels should see support for crude prices at these multi-year lows, but with no action to restrict production from Opec it will take some brave bargain hunters to dip their toes into the market. That seems to be the case for the moment at least with crude prices just a little higher this morning.

Overnight the Japanese economy was a bright spot with Q3 GDP expanding 0.3%, recovering from its most recent recession which gave USDJPY a little boost bringing it back towards the 123.00 level. This morning sees UK industrial production at 9.30 GMT which could test whether GBPUSD can hold onto the 1.5000 level.

Publication source
FxPro information  FxPro reviews

February 22, 2017
Crude oil look set to resume bullish trend
Oil prices have been coiling for several weeks now with both contracts spending most of their time in a tight four dollar range...
February 22, 2017
Investors are questioning the stability of EU, should you?
The US radiant future under the Trumpnomics remains a hot topic for speculation, propelling the greenbacks demand. More and more investors are trying to hop on the Dollars gravy train, as caution is lowered...
February 22, 2017
Brent remained strongly bid
Sustained break above the 57.50 region is seen as minimum requirement needed to confirm bullish resumption. Once we break above the 57.50 hurdle, we think that the 58.50 level will be next. Meanwhile, we do not exclude a minor correction towards 56.50 dollars per barrel...

Tickmill Rating
Fort Financial Services Rating
EXNESS Rating
Orbex Rating
FX Giants Rating
OctaFX Rating

Anyoption Rating
TropicalTrade Rating
OptionTrade Rating
24option Rating
99Binary Rating
Binary Brokerz Rating