Friday, Mar 21, 2008
Baltic Exchange Dry Index, which is a strong leading indicator for global inflationary pressures and commodity demand, has recently started to plummetleading indicator for shifts in price action for gold and oil, and over the past week, we have already se
dailyfx: The recent drop in the BDI is our first indication that commodity hungry countries like China and India are no longer immune to the slowdown
There are strong correlations to keep in mind when it comes to the commodity dollars. The New Zealand dollar has a very high correlation with the Australian dollar, and the Australian dollar shows strong links with gold prices. Meanwhile, the Canadian dollar is well known for its correlation with oil prices (though the strength of this relationship can vary). However, did you know that gold and oil are correlated with the BDI? The relationship between the Baltic Dry Index and these commodities can be seen in the chart below, courtesy of InvestmentTools.com.
Posted by chris @ 07:00 PM (209 views) Add Comment
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