New commodities supercycle kicks-off – JP Morgan
FXStreet News

New commodities supercycle kicks-off – JP Morgan

A fresh commodities supercycle may just have begun, with years-long gains in the offing, JP Morgan Analysts noted in their latest report published Wednesday.

Key quotes

A long-term boom across the commodities complex appears likely with Wall Street betting on a strong economic recovery from the pandemic and hedging against inflation

Prices may also jump as an “unintended consequence” of the fight against climate change, which threatens to constrain oil supplies while boosting demand for metals needed to build renewable energy infrastructure, batteries and electric vehicles

“We believe that the new commodity upswing, and in particular oil upcycle, has started.”

“The tide on yields and inflation is turning.”

Related reads

Weaker USD makes it more attractive for inflows, US economy outperforming – JP Morgan

Supporting factors for commodities to continue rallying – OCBC

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.