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Most bearish investors expect the US dollar to depreciate on stronger growth outside the US, very low US interest rates, and concern that pandemic relief programs are inflating fiscal deficits. Analysts at TD Securities say the Fed's revamped inflation approach will keep the dollar under pressure and estimate it is about 10% overvalued against major currencies.
A weaker dollar tends to support dollar-priced commodities and lifts US export competitiveness, while a weaker dollar also tends to lift foreign-currency buying power for importers of feed ingredients.
reuters.comSaqib Iqbal AhmedAug 31, 2020After 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.
