Risky assets under pressure
It seems like the same old story but we have seen more evidence that the US dollar is currently king of the Forex market. The US dollar is within reach of the 0,97 level against the Euro and it seems that little is going to stop the Dollar train at the minute. The dollar index is currently trading at 112.50. The latest move into the US dollar has stretched the Rand a little and we are within touching distance of R18.00. The fear of a global recession is quite evident with the price action today and things could get worse before they will get better. On a side note the GBP is at its lowest level against the USD in 35 years, currently trading at 1.0900.
Commodities falling like a Rock
All major commodities are under pressure with red across the board. We have Gold down by 1.6% and both Platinum and Palladium down by almost 5%. This indicated the lack of demand in the economy with recession fears abound. Brent Crude is also deep in the red trading at $ 85.79 per barrel. Commodities are affected most by supply and demand and weak commodity prices will continue if demand comes under pressure.
