FXStreet (Delhi) – Elwin de Groot, Senior Eurozone Strategist at Rabobank, notes that the EM commodity currencies are under renewed selling pressure so far this week amid yet another round of selloff in the commodity sector. Key Quotes “The Bloomberg Commodity Index plunged to another year-to-date low on Tuesday (in fact the lowest since 1999) before producing a modest rebound and trading this morning at 81.67. Despite a very decent IFO business climate survey, Bunds were bid with the 10y yield slipping below 50bps this morning whilst equity markets saw selling pressures on the back of renewed risk aversion as newswires reported this morning that Turkey shot down a Russian warplane close to the Syrian border. USD/TRY spiked to an intraday of 2.8794 in a kneejerk reaction to geopolitical news before retracing to 2.868 at the time of writing.” “This morning’s release of Japanese November manufacturing PMI reached a 20 month high. Insofar as a weak Q3 GDP report put Japan back into technical recession, today’s news is an encouraging signal. The PMI, which rose for a second consecutive month, showed strengthening in export orders and the employment sub-index. Less encouraging was the softening in the new order index. Although the Japanese economy remains vulnerable, not least to the outlook for China growth, today’s report adds weight to hopes that Japan will pull out of recession in the current quarter.” For more information, read our latest forex news.