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An essay by Andy Hecht argues that de-dollarization, driven by the Xi-Putin 2022 partnership and recent geopolitical events, could threaten the dollar's reserve role. It notes that the dollar index is weighted 57.6% to the euro and is driven mainly by interest rate differentials.
The piece says a shift in the currency system could push dollar-based commodity prices sharply higher.
Long-run questions about the dollar's reserve status affect how commodity prices are denominated, but the near-term effect on feed prices is speculative.
news.cqg.comAndy HechtAug 29, 2024After 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.
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.
