Risk Sentiments Drive Commodity Prices
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, Market Moves, Market Watch
The dollar and US bond yields appear to be having less of an impact recently after supporting the markets over the previous several weeks, and Asian demand does not show any indications of strengthening.
With the release of China's most crucial economic statistics along with US PPI and housing market data, volatility in commodity prices may continue
"The dollar and US bond yields appear to be having less of an impact recently after supporting the markets over the previous several weeks, and Asian demand does not show any indications of strengthening."
The US CPI met market expectations this week, confirming the Fed's rate hikes are having the desired effect. As a result, the dollar index plunged this week, experiencing its worst decline since June 2022. Following a 7.1 per cent increase in November, the US CPI dropped to 6.5 per cent Yoy in December, the lowest increase since October 2021. This slowdown was principally caused by a strong decline in gasoline prices, which offset a rent increase.