Commodity prices continued their Great performances overnight, helping commodity producer stocks lead most Asian indices higher.Gold is on the highs around $1128, representing a gain of 2.8% in 2010 already, and crude oil remains elevated just below $82 a barrel.
Sentiment has been buoyed by comments from the IMF’s John Lipsky that the organization would be revising higher its forecasts for global economic growth from 3.1%, and concurrently, the Baltic Dry Index, which we have long used as an indicator for global demand, rose for the first time in over a month yesterday – jumping around 4.5%.
The reaction in Forex markets has been one of widespread USD-selling; with Euro/US Dollar back above the 1.4460 technical level, and USDJPY now trading down at 91.75.
The 14-day RSI on the dollar index (DXY) has now pared all the way back from its overbought levels on 22 Dec at 72.1 (where levels above 70 are considered overbought) down to neutral current levels of 52.5.
