The interesting thing I’ve noted here in the BHP overview of commodity prices and production is the marked difference between the developed and developing worlds. The price recovery has been driven by nations such as China but the speed of recovery in the developed world still remains uncertain. This is a scenario which we are going to have to get used to; Europe and the US do not have the same capacity for expansion (if indeed they have any at all) that countries like China, India and Brazil have.
What all this means for the FX market? Commodity currencies to stay strong, EUR/USD to oscillate in an as yet undefined range, and regional Asian currencies like the KRW to continue to strengthen.