After taking a 4-week break in February, the US dollar has restarted its ascent, skyrocketing again in March. The index is recently hit a new multi-year high.
Meanwhile, the Euro has fallen to its lowest level in more than a decade. Continued friction between Greece and its EU and IMF creditors and sluggish economies are all impacting the Euro.
We know that spikes and falls in currencies can have huge impacts on commodity prices and, therefore, in the price you pay for your metals. As the dollar strengthens again, it might not be long until commodities take another hit.
In particular, the rising dollar will keep downward pressure on crude oil. Oil prices have stabilized since their big drop and the beginning of the year, however, the rising dollar might be pointing to further declines in oil prices.
If oil is not able to hold at current levels, this could hurt the rest of the commodities sector significantly. As we’ve pointed out previously, oil might be the clue to the future of base metals. The outlook? Metals could get really cheap throughout 2015.