0 Simon Mugo Posted April 9, 2019 Author Share Posted April 9, 2019 Quote Link to comment Share on other sites More sharing options...
0 Simon Mugo Posted April 9, 2019 Share Posted April 9, 2019 Commodity-linked currencies led by the Canadian and New Zealand dollar have rallied higher recently driven by the rally in crude oil prices, which are a major income earner for their respective countries. This raises the question of whether these currencies shall keep rallying in future or whether the recent spikes are just short-term anomalies that shall quickly fade away. To answer this question, we must ask ourselves whether the rice rally was triggered by a short-term driver such as a geopolitical development, or whether the price increase was driven by a more long-term trend. The answer to this is that the recent crude oil price rally was largely driven by declining global supply of this crucial source of energy combined with rising global demand for the same commodity. The current state of the global oil industry is unlikely to change in the near future are US sanctions and OPEC supply cuts are likely to remain in force throughout Q2 2019. Therefore, it is highly likely that commodity-linked currencies will keep rising for the foreseeable future. Quote Link to comment Share on other sites More sharing options...
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