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The dollar fell after technical reversals, a weak US ISM manufacturing print, and a sharp sterling rally as the UK parliament moved to block a no-deal Brexit. US 10-year yields dropped to new cycle lows below 1.44%.
The Bank of Canada was also due to announce a rate decision.
A softer dollar supports dollar-denominated commodity prices and eases import costs for foreign feed buyers. Lower US yields and weak manufacturing data point to slowing demand.
ceifx.comSep 4, 2019After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Published for 2019-09-04, it directly attributes the dollar's drop to technical reversals, a weak ISM print, falling Treasury yields and a sterling rally on reduced no-deal Brexit risk.
