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The Bloomberg Dollar Spot Index climbed for a fifth straight day, gaining roughly 2% and posting its biggest advance since February 2023. Investors bid the dollar on expectations US rates will stay high and on safe-haven demand amid Middle East tensions.
A stronger dollar makes dollar-priced commodities more expensive for foreign buyers, typically pressuring grain and meal prices, while Middle East risk can add some offsetting support to energy-linked costs.
bloomberg.comNaomi Tajitsu, Anya AndrianovaApr 16, 2024After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% over 20.
After 273 past bearish macro events, Soybeans moved a median -0.4% over 5 sessions (44% higher; middle half -2.4% to +1.4%), and -0.5% over 20.
After 487 past bullish macro events, Crude Oil (WTI) moved a median +1.0% over 5 sessions (60% higher; middle half -2.0% to +4.0%), and +1.5% over 20.
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.
Directly describes the dollar index's ~2% five-day gain to 2024-04-16, driven by expectations of delayed Fed cuts and safe-haven demand.
