Commodities Fall on Wednesday as USD Rebounds

Commodities across the board are selling off on Wednesday as the emerging market currency crisis continues to wreak havoc in global markets.

Metals in particular are suffering as a higher dollar caused by the EM currency sell-off pushes commodity prices sharply lower.

Copper is being hit, dropping to a low not seen in over a year. The industrial metal, used in electronics and wiring, is down by close to 4% at 11.50 a.m. BST (6.50 a.m. ET), trading at just $5,884 per metric tonne, according to Markets Insider data. It has not been below $6,000 since summer 2017.

Other metals are also feeling the pain, with aluminium down 3%, lead losing 2.9%, and platinum falling 3.3% on the day.

Via Business Insider

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza