What do Sharp Oil and Gold Reversals Mean to the FX Market
• Gold, initially sunk by Switzerland's Referendum, posted its biggest bullish reversal in 3 years
• Oil would similarly reverse course after reaching far into a five-year low
• With moves of this magnitude, we discuss how commodities influence the FX and global capital markets
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The title of top mover for the week may already be held by commodities. Initially suffering significant declines through the opening half of Monday's session, both US oil and gold staged their largest respective bullish reversals in three years. The precious metal was running on news of a 'No' vote for the Swiss Gold Referendum which meant a large potential bid instantly evaporated. Energy has tumbled nearly 40 percent over the past six months. Traders are no doubt wondering whether this shift will hold. Furthermore, the question about whether its influence will spill over to FX and other capital markets is an obvious next step. We discuss the dramatic volatility and cross market implications of the commodities market movements in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.