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Commodities fell as the dollar rebounded and the yuan sold off, with WTI down 4.0%, silver down 2.5% and copper down 2.0%. Hawkish Fed commentary pushed market expectations for the terminal rate back to 5%.
Rising COVID cases in China also raised concerns about weaker Chinese demand, including reduced crude purchases by Chinese refiners.
Weaker Chinese demand and a stronger dollar both reduce demand and raise the cost of commodities priced in dollars for importers. This points to softer prices for energy and industrial inputs, with knock-on effects for feed ingredient values.
forex.comFawad RazaqzadaNov 17, 2022After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% 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.
After 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.
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.
