# Commodity currencies at multi-month highs, pound firm on BoE hike bets

> Commodity currencies such as the Canadian dollar were near multi-month highs on October 20 as oil prices reached multi-year peaks. The dollar index eased to 93.602, near its lowest since late September, while sterling held firm on expectations of a Bank of England rate hike.

- Date: 2021-10-21 · published 2021-10-21T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/44806-commodity-currencies-at-multi-month-highs-pound-firm-on-boe-hike-bets
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Higher oil prices lift energy and transport costs for feed production and freight, and a weaker dollar can support dollar-priced commodity demand from importers. The effect is mainly through input costs.

## Read by commodity

- DXY: bearish ▼
- WTI: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2021-08-23 | [Rebound in commodity prices, weaker dollar lift Latam currencies - Markets - Business Recorder](https://feedsoft.ai/events/45760-rebound-in-commodity-prices-weaker-dollar-lift-latam-currencies-markets.md) | +10.5% | +13.0% |
| WTI | 2023-07-31 | [Canadian dollar notches monthly gain as commodity currencies rally - The Globe and Mail](https://feedsoft.ai/events/35271-canadian-dollar-notches-monthly-gain-as-commodity-currencies-rally-the-globe.md) | +2.8% | -0.4% |
| WTI | 2017-05-26 | [Ringgit jumps on Opec, yuan at three-month high, other Asian currencies drift \| Malay Mail](https://feedsoft.ai/events/71274-ringgit-jumps-on-opec-yuan-at-three-month-high-other-asian-currencies-drift.md) | -2.1% | -11.9% |
| WTI | 2020-05-18 | [Dollar struggles as rising oil prices lift commodity currencies](https://feedsoft.ai/events/53034-dollar-struggles-as-rising-oil-prices-lift-commodity-currencies.md) | +13.5% | +26.0% |
| WTI | 2021-05-11 | [Commodity currencies hold advantage as dollar waits for inflation and Fed \| Reuters](https://feedsoft.ai/events/47003-commodity-currencies-hold-advantage-as-dollar-waits-for-inflation-and-fed.md) | +2.0% | +8.0% |
| DXY | 2017-07-27 | [Dovish Fed Spurs Commodity Prices and Currencies Higher - ActionForex](https://feedsoft.ai/events/69898-dovish-fed-spurs-commodity-prices-and-currencies-higher-actionforex.md) | -0.6% | -0.5% |
| DXY | 2020-06-08 | [Dollar dips as commodity currencies gain on recovery hopes \| Financial Post](https://feedsoft.ai/events/52527-dollar-dips-as-commodity-currencies-gain-on-recovery-hopes-financial-post.md) | +0.7% | +0.4% |
| DXY | 2023-07-26 | [Dollar’s decline throws spotlight on battered commodity currencies](https://feedsoft.ai/events/35307-dollar-s-decline-throws-spotlight-on-battered-commodity-currencies.md) | +0.6% | +2.1% |

## Sources

- cnbc.com: https://www.cnbc.com/2021/10/21/forex-markets-commodity-currencies-bank-of-england-dollar.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.