SaxoTV

Hansen: The Dollar's hurting commodities again and here's why

706 views
May 20, 2015 brent, brent crude, brent spread, commodites, commodities, commodities gold, commodities markets, commodities prices, commodities supply, commodities trading, commoditiies, commodity, commodity gold, commodity index, commodity investing, commodity investments, commodity market, commodity markets, commodity outlook, commodity prices, commodity sector, commodity strategy, commodity trade, commodity trading, commoditymarket, crude, crude oil, crude oil prices, crude price, crudeoil, gold, gold bonds, gold buy, gold buying, gold commodity, gold demand, gold dollar, gold exchange, gold investing, gold investment, gold levels, gold market, gold predictions, gold price, gold prices, gold support, gold trade, gold trading, goldman sachs, goldprice, oil, oil commodities, oil demand, oil industry, oil inventories, oil market, oil markets, oil news, oil price, oil prices, oil production, oil refinery, oil stocks, oil supplies, oil supply, oil trading, saxo bank, saxo tv, strong currency, strong dollar, strong usd, trading, tradingfloor.com, us dollar, us dollar index, us dollar index bull, us dollar rise, usd, usd index, usd strength, wti, wti brent, wti crude, wti crude oil, wti price, wti supply, wti vs brent, wticrude, xau, xauusd
The Bloomberg Commodity Index is down more than 2% over the past three trading days. Saxo's Ole Hansen says that yet again it's the US dollar that's to blame as he illustrates the negative correlation between the two.

Crude oil had seen a dramatic rally throughout April and the beginning of May but has been under pressure over the last few days. Ole says it's recovering a little this Wednesday but the fundamental issues remain unchanged - namely that OPEC production continues to rise and that US production isn't slowing fast enough. Ole explains that this combined with a strengthening dollar and the Goldman Sachs report suggesting crude could fall to USD 45 by October, have hurt sentiment.

Gold meanwhile is stuck in a range. Ole says there needs to be more clarity on the US economy before gold can break out.