Commodity charge movement is looked frontwards to from the U.S. shackles

By Zou

Over the past few months, commodity prices and the U.S. dollar in the past few decades in the form of "negative correlation between", that there have been some subtle changes.

Here, we Commodity Index and the U.S. dollar indicator as an example.

December 5, 2008 to 18, as long as a short interval of eight exchanging days, the dollar indicator plunged from 88 points to 77 points, and in March 9, 2009 to 89 points over, and then in the March 19 or Back to 82 points. The Commodity Index fallen to chase the fluctuations in the dollar indicator has waited at 330 points to 360 points, a tapered assortment of fluctuation between.

Take a view at the gold market. Over the past small number decades, the U.S. dollar gold charge and between the "negative relationship between the" more prominent. However, in fresh months has in addition modified a lot. That is, if or depreciation of the dollar, gold costs still hovering at high level.

Why is there such abnormal changes?

Trend from the purpose of scenery, an unprecedented worldwide fiscal critical purpose is clear to observe the world, the global bulk goods denominated in U.S. dollars as the only currency is full of defects and community, in augmentation to the United States to its creditors fully completed irresponsible stance and plays throughout the world will unavoidably lead to efforts to change the position of the global monetary system.

The deteriorating United States dollar, considering the bulk goods in the global market is locked-in to be a bewildering - can not find a sense of direction. It in addition reflects the U.S. dollar and goods costs that the aged bond between the break.

From another issue of outlook, the increase of trade protectionism forces one time afresh, comparable devaluation of the currency is compelled to become the Government's principle options. The World Bank handed out a March 17 report remarks that: Since the economic urgent position, nations all over the world, or the introduction of protectionist assesses to be presented about 78, of which 47 have been implemented. In the implementation of the assesses, encompassing the devaluation of the currency.

Competitive devaluation of nationwide currencies, and trade defence principles of the introduction of common, producing in the foreign exchange market exchange rate between the diverse monetary relatives (exchange rate) alterations often, but the rate increase. Such market situation, in alignment to hedge for the reason of making the investors to stay away from the foreign exchange market, and product market hedge turn.

If this is the superior feeling of the market risk, and that product charges will not gaze at the U.S. face. That is to say: Whether it is or is depreciated dollar, product charges will only rise. At the identical time, if this occurs, then the power of nationwide currencies, there will be through the buying power of products to be reflected.

Right now, this subject of course, there is no outbreak, it is because goods markets through the rehearse of hedging the market has yet to become ordinarily recognised, but the future? I consider the prospect does exist. At the very slightest, the prevailing in the global fiscal markets show worthy of sombre worry to all varieties of chaos. In item, this is in addition a large number of population to adjudicator the U.S. because of "water" and if there will be a worldwide "stagflation," a greatest concern. - 21392

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