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Commodity prices rallied across the board this week as risk appetite improved and the US dollar eased after Powell's cautious Jackson Hole remarks. Analysts expect persistent inflation to push US yields and the dollar higher in coming months, which would weigh on commodities.
The analysis expects a stronger dollar later, which would pressure dollar-priced feed commodities, though the near-term move is supportive.
capitaleconomics.comLuke Nickels, Kieran Clancy, Caroline Bain, Adam HoyesAug 27, 2021After 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.
