The USD recovery on Friday caused the fall of commodities; this means that the cost of several goods will not be too wasteful for the capitals of the American people. At the moment the US currency has compensated all its losses it has borne throughout the year. For instance the US Dollar Index on the Chicago Mercantile Exchange that shows the USD in relation to other major currencies has increased to the level last experienced in the December 2007. Such events decreased the intentions to use dollar-denominated commodities as a hedge.
The USD recovery has also affected the gold as well. According to the trades data from the New York Mercantile Exchange the gold for December delivery decreased to $785.60 per ounce. As for the other precious metals they have also decreased. For instance Silver deteriorated to $12.90 an ounce and the copper to $3.2925 a pound.
According to the investors’ point of view the world demand will decrease as the economies of such countries like Japan, Germany and France seem to weaken currently.
Due to Edward Meir senior commodities analyst at MF Global in New York the recent trend of following the US way in slowing of the economy still shows perfect outlook for holding the USD. Too strong USD means decreased exports of US goods that will be too expensive for other countries.
Due to the data provided by the Chicago Board of Trade the wheat decreased to $8.50 a bushel, corn – to $5.595 a bushel and soybeans fell to $12.34 a bushel.
The same trend was with the sweet crude that fell to $111.59 a barrel and heating oil futures that decreased to $3.0498 a gallon. However the general economic numbers were quite positive for the US currency.
According to the Federal Reserve the industrial production increased over the expectations and the regional manufacturing area will seem to widen throughout the August.