www.tradingfloor.com - The surprise German decision to ban naked short selling has pushed the dollar higher against the Euro and contributed to a worsening picture for commodities, says Saxo Bank's Ole Hansen. Most commodities have been hit as selling to cover margin calls has increased.
Oil has suffered most, falling to $69 on a combination of a higher dollar and worries about falling consumption in Europe and China. A 20% fall in the Chinese stock market has also continued to dent copper. Gold is range trading with the stronger dollar preventing further rises.