Commodity demand sentiment is recovering from oversold levels – TDS
|The entire commodities complex has notably rallied as the conflict in the Middle East comes to a boil, TDS commodity strategist Daniel Ghali notes.
Downside asymmetries in positioning risks remain significant
“The entire commodities complex has notably rallied as the conflict in the Middle East comes to a boil, but this price action may actually be underscored by a reversal in demand expectations embedded within commodities prices associated.”
“Under the hood, however, the underlying macro force behind this reversal appears to be associated with global macro flows, in particular the fierce price action in global bond markets and the broad USD weakness associated with a firming JPY.”
“While this has raised the bar for natural outflows from CTA trend followers in the base metals complex, downside asymmetries in positioning risks remain significant across Copper & Zinc markets.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.