The Energy Information Agency shocked the market by reporting that U.S. Crude supply increased by 6.7 million barrels putting supply at the highest level in 82 years. So much for that uptick in gasoline demand.
Forex markets were taken by surprise that the U.S. economy only created 88,000 jobs in March while a poll of analysts anticipated a number closer to 190,000. The U.S. dollar quickly sold-off, but could that be reversed quite soon?
While the oil market fell, RBOB gasoline futures have gone crazy. Yet behind the volatility are a story of record high renewable fuel credits, surging ethanol costs and the possibility of government mandated shortages.
The euro currency technically and fundamentally is in trouble and so too is the long commodity trade. Traders more and more will seek safe harbor in the dollar and bonds, and commodities will seek to trade in a lower range.