Commodities Report: USD & Options Flow

USD & Option flow anaylsis

Hello Traders,

As we mentioned, we’ve closed our silver and silver miner trades. Macro headwinds are picking up now that the ISM data shows the US economy is actually quite resilient. Between that recovery and the persistent "Prices Paid" inflation, the Dollar has found its footing and recovered over the last few sessions, which makes holding silver much tougher.

We also made the call to exit our copper miner positions yesterday, also copper is feeling the pressure from a surging Dollar.

FX VOLATILITY

EUR/USD failed at the 1.20 "debasement" level, sparking a messy reversal in metals. Silver is taking the biggest hit, proving once again it's the most high-beta play when FX and rates get volatile.

We’re at a crossroads for the "Greenback." While the US labor market is cooling, Europe just reported lower-than-expected inflation at 1.7%. Usually, that would give the ECB a reason to cut rates, but the Euro’s strength is doing the work for them by keeping prices down. The next round of GDP and employment data will be the tie-breaker to see if the Dollar can finally catch a bid or if the Euro keeps its lead.

Now let’s go straight into our today’s analysis for SLV 0.00%↑ GLD 0.00%↑ COPX 0.00%↑ USO 0.00%↑ URA 0.00%↑