Commodity markets completely ignored the Federal Reserve announcement of an additional USD10bn tapering of its asset purchase program.
We expect the dollar to strengthen this year as continued Federal Reserve tapering will diverge from further easing in the euro area.
The outlook for a stronger dollar looks more worrying for metal prices, both base metals and gold, which are currently more sensitive to dollar strengthening.
Oil and food prices, on the other hand, look less responsive to dollar strengthening, which likely reflects the present benign oil and grains supply situation.
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