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Commodities sold off during the week as minutes from the latest FOMC meeting suggested the Fed had not done enough to fight sticky inflation. Chinese economic weakness, driven by property sector fears, pushed the offshore yuan toward a multi-year low before state banks and the PBoC intervened.
Bond yields approached pre-financial-crisis levels.
A weaker yuan and slowing Chinese demand reduce import appetite for China-linked commodities, while higher US yields strengthen the dollar and pressure prices.
home.saxoOle HansenAug 18, 2023After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
After 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.
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.
