The February trading month started out with a ‘hiss and a roar’, with US equities wiping out last Friday’s dramatic losses. The real drama last week was in the commodity markets, more especially, precious metals. Silver suffered its biggest single day trading loss, following unprecedented gains, over the last couple of months. The volatility in the precious metals market is set to continue at these unmatched levels, as demand is outstripping production in silver, copper and many others metals. The rollercoaster has slipped over into equity and crypto markets. The US Dollar surged back, with the EUR tumbling to 1.1800. while the GBP retreated to 1.3650.
Commodity currencies were not immune to the recovering reserve, with the AUD crashing back to just 0.6950, while the NZD is testing 0.6000. Markets will remain pre-occupied with market trading rather than data, as highly leveraged derivative markets, are tested dramatically.
