Oil needs a new model - ANZ

FXStreet (Guatemala) - Richard Yetsenga at ANZ Research explained that interpreting the recent falls in commodity prices has become more important for broader market and economic calls.

"A broad financialisation model seems to explain recent developments best".

"This model suggests that if oil and other commodity prices are falling because global USD liquidity is increasingly restricted, then it is difficult to interpret that as a growth positive development".

"More broadly it supports the additional idea that USD cycles are different from cycles in other currencies".