April 13, 2016 - Written by Minesh Chaudhari
STORY LINK Could GBP Forecast Fall vs CAD NOK AUD NZD and ZAR on New Commodities Supercycle?
Commodity Currencies Rally, AUD, NZD, ZAR, NOK Trending Higher
The price of a barrel of Brent Crude Oil struck its highest level this year during the latter part of yesterday’s European equities session. The shift back into ‘Black Gold’ by institutional investors was driven by increased expectations that several of the world’s premier oil producers might be about to reach an agreement on restricting levels of supply.
Crude Oil Climbs, GBP Down Vs. Norwegian Krone
Brent Crude soared to levels not witnessed since the first half of December at above $44 a barrel following the release of a report suggesting that Saudi Arabia and Russia are set to reach an accord on limiting supply in spite of one time pariah state Iran’s apparent reticence in joining them.
A potential agreement could be in place sooner rather than later, with members of OPEC and other producers set to meet in the Qatari capital Doha on Sunday. The meeting coincides with a planned strike by Kuwaiti oil and gas workers, which is penned in to commence on the same day.
Is the Pound's Downtrend against Commodity Peers Forecast to Continue?
The price of a barrel of crude was settled at above the $60 level as recently as the middle part of last Summer and analysts forecast that a return to these levels could be on the cards if the world’s leading oil producing nations do indeed reach an agreement. Analysts forecast that such an outcome would be likely to send the Pound Sterling (currency : GBP) sharply lower against the Canadian Dollar (currency : CAD) and the Norwegian Krone (currency : NOK).
If oil does head higher on the wholesale markets, then leading analysts believe that it could take other commodities, including metals and softs, with it. If the near-term improvement for oil does indeed herald the emergence of a fresh commodities supercycle, then look for the Pound Sterling Australian Dollar and the GBP NZD exchange rate to continue to trend Southwards in the short to medium term.
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TAGS: Currency Predictions Pound Norwegian Krone Forecasts Pound Forecasts