#forexbreakfast commodity focus
The week has been positive on the commodity market; the Bloomberg commodity index closed up by 1.4%. The context is still characterized by a generalize risk-on sentiment favoured by recovering prices. Bad data on the epidemic spread in Latin American and new outbreaks in China have been partially ignored by the financial markets.
On the energy markets the week has been extremely good. Industrial metals returned to the positive territory up by 1.4% due to higher demand and positive expectations from the Chinese infrastructure plan. Precious metals are also in the green with gold up 1.2%. Agricultural products have suffered a setback with 0.4% decline partially due to a contraction in wheat (-4.4%) which returned higher than expected supply output.
Very positive week for the Brent, which reached the $ 40 / b threshold. The best market conditions and signs of rising demand have been decisive for the past week. If the rise of Brent continues, it may reach the area of 45, instead is monitored the area around 36 and 38 $/ b downwards.
The week for the golden metal which has not exceeded 1755 has been stationary. It is still in the trading range between 1670 and 1775; this phase in enduring from about two months and soon this phase could be interrupted, giving vent to compressed volatility.
It is in an extremely overbought phase, last week price of copper broke the resistance placed at 5660 going to test the next resistance placed at 5860. If this week it close above the latter resistance, the price of copper will get to test area 6000