Recent moves in the commodity markets have finally begun to reset the balance between commercial and speculative traders.
Many markets have faced contraction as both commercial and speculative traders have taken chips off the table ahead of the election and year-end.
The British pound lost more than 20¢ to the dollar in less than two weeks following the Brexit vote.
The post-Brexit and non-FOMC action in the U.S. interest rate futures clearly shows that commercial traders are expecting the yield curve to begin steepening towards the fourth quarter.
