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The dollar index fell about 0.7-0.8% on Friday as the bond market showed inflation warning signs. Fed chair Jay Powell said policymakers would allow inflation to run past the 2% target to support recovery from the coronavirus shock.
Expectations of lower-for-longer rates and higher inflation weaken the dollar, which tends to support dollar-denominated commodity prices and can attract inflows to hard assets.
ft.comAdam Samson in London, Colby Smith in New YorkAug 28, 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.
