Conventional wisdom may be that the drop in the dollar will be bullish for commodities, but there has actually been a breakdown in the correlation between the two, Goldman Sachs' Jeff Currie told CNBC on Wednesday.
Key commodities traded globally, like oil and gold, are typically priced in dollars. Currie, global head of commodities research at Goldman Sachs, said what's driving the breakdown of the correlation between the dollar and commodities is the lack of uncertainty in crude prices.
"There is more confidence in long-term oil prices than we've seen in 15 years," he told "Closing Bell."
That's because shale is the new dominant resource base and the only uncertainty now is how much it will cost to extract, not the technology, Currie noted.
Overall, Currie is "quite bullish" on cyclical commodities, and believes they have more upside.
Source: Bloomberg
Trader I. Ivanov
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