# Commodity currencies hold advantage as dollar waits for inflation and Fed | Reuters

> The dollar weakened against currencies of major commodity exporters as traders anticipated further gains in oil, copper, steel and other metals. Investors continued to adjust expectations for when the Federal Reserve would begin tapering bond purchases and raising rates.

- Date: 2021-05-11 · published 2021-05-11T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/47003-commodity-currencies-hold-advantage-as-dollar-waits-for-inflation-and-fed
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

A weaker dollar tends to support dollar-denominated commodity prices, while commodity-currency strength reflects broad resource demand. Shifting Fed tapering expectations add volatility to the dollar and to commodity pricing.

## Read by commodity

- DXY: bearish ▼
- WTI: bullish ▲
- BRENT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-08-24 | [Dollar slips further as oil rallies, commodity currencies gain \| Reuters](https://feedsoft.ai/events/12117-dollar-slips-further-as-oil-rallies-commodity-currencies-gain-reuters.md) | -0.6% | -0.1% |
| DXY | 2021-04-30 | [Inflation-tolerant Fed will boost commodity prices \| Reuters](https://feedsoft.ai/events/47512-inflation-tolerant-fed-will-boost-commodity-prices-reuters.md) | +0.1% | -0.8% |
| 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 | 2017-07-27 | [Dollar Selloff Resumed after FOMC, Commodity Currencies the Best Performers - ActionForex](https://feedsoft.ai/events/69895-dollar-selloff-resumed-after-fomc-commodity-currencies-the-best-performers.md) | -0.6% | -0.5% |
| WTI | 2021-08-30 | [US Dollar Weakens as Dovish Fed Lifts Stocks, Bonds, Commodities and Other Currencies. Where To From Here? \| Forex trading, free forex education \| Forex.ca](https://feedsoft.ai/events/45482-us-dollar-weakens-as-dovish-fed-lifts-stocks-bonds-commodities-and-other.md) | +0.8% | +9.7% |
| 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 | 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% |

## Sources

- reuters.com: https://www.reuters.com/world/middle-east/commodity-currencies-hold-advantage-dollar-waits-inflation-fed-2021-05-11/

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