USD / CAD breaks late July low
Energy is once again dynamic with rising oil and gas prices. WTI hit $ 81.68 but fell to $ 80.85. Natural gas is up 3.5%.
Industrial metals are also back in fashion, with copper prices now testing their late July high. This is a sign that the broader reflation trade is unfolding. This reflects both the inflationary push and the continuing signs that the most recent wave of covid may be the last. Or at least the final big wave.
With the return of stocks, the only place that could derail sentiment is in bonds. Yields have retreated this week and this needs to be watched closely.
On the bright side, if China provides stimulus – which I think is ahead – then the rally in commodities could really pick up.
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