Thoughts on Commodities and the Yen After Recent CPI
Been watching the commodities space pretty closely, especially after that CPI print yesterday. It felt like a bit of a mixed bag – the core came in slightly cooler, which usually offers some breathing room, but the sticky services inflation is still a red flag for the Fed. I'm trying to connect the dots on how this plays out for metals, particularly gold, and even the energy sector. My initial read is that if the market starts to price in fewer cuts, or even sustained higher for longer, that USD strength is going to be a headwind. But then you have the dynamic with the Yen, which really got hit hard. If Japan is still reluctant to intervene and the Yen keeps weakening, that's got to affect global commodity demand, especially from Asia. Just curious how others are adjusting their watchlist or hedging their commodity exposure right now. Any thoughts on how the $EMQQ move (+0.53% today, now at 33.095) fits into this broader picture of inflation and currency movements?
I'm also watching gold closely. The core cooling is a positive, but sticky services inflation does keep a lid on how much the Fed can ease, potentially capping gold's upside for now.