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The stock market failed to remain positive for the day, closing Wednesday with a slight decline. Stocks, commodities, and currencies dynamics since the start of the day on Thursday indicate the potential for further downside.
Investors are getting more signs of economic contraction, which increases the chance of a recession in the coming months. Among the commodities, we note a spike in cotton and a fall in copper.
Copper, sensitive to production cycles, has lost 15% in the last two and a half weeks, falling back to its lowest level since February 2021.
Cotton, which has a tight correlation with consumer activity cycles, is trading down about 30% from its peak in early May, 22% of which has been down from early June. The fall accelerated two days ago when the price dipped below its 200-day moving average, underscoring the serious intentions of the sellers.
The euro is trading below $1.05 again after a failed attempt to bounce above $1.06 during Wednesday’s trading. Once again, the bears took the upper hand on EURUSD’s approach to the 50-day moving average.
Investors are getting more signs of economic contraction, which increases the chance of a recession in the coming months. Among the commodities, we note a spike in cotton and a fall in copper.
Copper, sensitive to production cycles, has lost 15% in the last two and a half weeks, falling back to its lowest level since February 2021.
Cotton, which has a tight correlation with consumer activity cycles, is trading down about 30% from its peak in early May, 22% of which has been down from early June. The fall accelerated two days ago when the price dipped below its 200-day moving average, underscoring the serious intentions of the sellers.
The euro is trading below $1.05 again after a failed attempt to bounce above $1.06 during Wednesday’s trading. Once again, the bears took the upper hand on EURUSD’s approach to the 50-day moving average.
