Commodities prices fell to the lows
And they brought other markets with itself. Analysts believe that all financial markets tightly connected with commodities may receive weaker currencies.
We can see it already on the Australian and Canadian example, whose currencies were protected by oil prices.
According to the global strategist Cliff Tan, the situation with commodities may show the global markets that economy needs significant moderations.
This Friday, futures of Chinese iron ore went down and lost 7 percent during the first trades in the morning. Yesterday there was an 8 percent tumbling due to the new concerns that demand for this commodity around the world may fell down.
Oil has reached its lows of the last five months, as OPEC has finally admitted that they will need to prolong their output cuts if they want to stop the global glut of oil.
WTI American main oil benchmark ended this day with 44.14 dollars for a barrel cost. It is down to the 1.39 dollars. The previous session was also not very successful for oil producers, and oil went down 4 percent as well.
The optimism is rising in the USA with the recent decision of House of Representatives about healthcare act and a very solid report of quarterly earnings.
Meanwhile, a hawkish decision of Fed to make two interest rate hikes during a year dampened gold demand as the safe haven for investors. The cost of gold now is equal to the 1,288 dollars per one ounce.
Traders prefer to stay cautious before the French election.