This could be a sign that they believe dollar weakness has run its course, or at least that it has become too crowded in the near term.
MetalMiner: The change is reflected in two ways, first, a reduction of 32% in their VaR (value at risk – the sum of money a bank is willing to lose in one day of trades) to $27 million and a reduction in hirings for the commodity department. Of course their change of approach does not preclude them from coming back into the market next year but it supports our own position this last two months that further price increases are unlikely and the fourth quarter could see a drop back in prices as demand fails to materialize as hoped.
