Commodity Prices Still a Central Focus for Currency Traders

Commodity prices and the commodity currencies are still the central focus of the currency markets even though there has been no economic data released because the trend of commodity prices will impact the direction for many of the major currencies.

The Financial Times said in today’s paper that oil price hit $100 yesterday because a lone trader paid up to seek a minute of fame and claim that he “did it.” Whether or not this is true does not matter as much as whether we will see $100 again. Expect continued action in the commodity currencies over the next 24 hours as we are expecting Australian service sector PMI, Canadian raw material prices and IVEY PMI.