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Originally Posted by lannarebirth  Quote:
Originally Posted by Panda The $US has been gaining strength against all the major currencies over the past 3 weeks. At the same time, food and oil have dropped in value.
There seems to be a correlation? Didn't the price of oil start to rocket up about the same time the $US went on a slide around a year ago? Exchange Rates Graph (American Dollar, British Pound) | It started going up (strongly) when the general public started investing in commodities as if it were a true asset class. their contributions were small enough that rolling over their futures positions made them still more money as markets were in backwardation. Now that they've gone contango and the price is falling the hot money is staring to disperse. It's pretty obvious if you follow the money and you do't get attached to your own idea of "what must be happening". |
"backwardation" and "contango" ?