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Don Pittis discusses Goldman Sachs' warning that the US dollar's reserve-currency status faces longer-term threats as the US economy weakens. He notes the loonie is rising against the dollar ahead of a Fed meeting where Powell may push back on the idea.
Concerns about dollar reserve status and Fed policy point to longer-run dollar weakness, which can support dollar-priced commodities, though the effect is largely speculative.
cbc.caDon PittisJul 29, 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.
