Millar
June 17, 2016
Millar, Fortuity Risk Analytics
We simplify global financial markets to help our subscribers manage risk.

What really burst the commodity bubble

Did you know that the long-term price direction of commodities are heavily dependent on the long-term relative value of the US Dollar?

The Commodity Research Bureau (CRB) Commodity Index is made up of 22 economically sensitive commodities calculated with a base year of 1967, which simply means that in 1967 the Index had a value of 100.

The US Dollar Index is a weighted average exchange rate of major world currencies, which indicate the general international value of the US Dollar. Currently, the Euro represents 57.6% of the index, the Japanese Yen represents 13.6%, the British Pound represents 11.9% and the Canadian Dollar represents 9.1%, with all other currencies representing less than 5%. So, the US Dollar Index is most heavily influenced by the Eurozone economy and the European Central Bank (ECB)....

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