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CIBC Asset Management's Luc de la Durantaye said the COVID-19 shock drove the US dollar higher in March through a shortage of dollars, but Federal Reserve liquidity measures have reversed the rise. He expects a stabilizing or weaker dollar if the pandemic eases by late May or June, with a more bearish outlook if a second wave hits in the fall.
A weaker US dollar would typically support dollar-priced commodity demand from importers, while a renewed dollar spike would weigh on US-priced grains and oilseeds.
advisor.caofficebureauApr 22, 2020After 359 past neutral macro events, DXY moved a median -0.0% over 5 sessions (49% higher; middle half -0.4% to +0.4%), and -0.1% over 20.
Not enough comparable past events yet for a historical read.
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.
