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Wood Mackenzie published research arguing that the US dollar's dominance in energy and metals pricing is weakening. It cites three forces: sanctions pushing exporters like Iran and Russia away from dollar payments, China and Europe promoting their own currencies, and the energy transition.
A gradual shift away from dollar pricing would be a long-term structural factor for commodity prices in dollar terms. It has little direct near-term effect on feed grain prices.
woodmac.comPeter MartinNov 4, 2019After 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.
