Commodity currencies remain vulnerable to further correction lower in near-term – MUFG

Market news

9 May 2022

Commodity currencies remain vulnerable to further correction lower in near-term – MUFG

Are commodity currencies starting to lose some of their shine? Economists at MUFG Bank are adopting a more cautious outlook for commodity-related currencies in the near-term.

Building fears over a sharper slowdown in global growth

“We could be at a tipping point where a further move higher in prices could now be viewed as less supportive for commodity-related currencies in so far as they serve to reinforce fears over a sharper slowdown in global growth ahead.”

“USD/CAD breaking above 1.3000 and AUD/USD below 0.7000 would provide further bearish technical signals.”

Currencies. Daily history for Monday, May 9, 2022

Commodities. Daily history for Friday, May 6, 2022

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer

Open Demo Account & Personal Page

Personal area

support@teletradepartners.com

Risk Warning: Trading in the financial markets (including trading on margin) provides a wide range of opportunities and enables investors ready to take risks to make high profits, but it carries a potentially high level of risk of loss. Therefore, prior to trading you should take into careful consideration whether such operations are suitable for you in terms of your level of knowledge and financial situation.