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US stocks fell after the Federal Reserve cut its policy rate by 25 basis points and described the move as a mid-cycle adjustment without assuring further cuts. The Dow dropped sharply, the dollar rose near three-year highs, and credit spreads widened.
A firmer dollar and tighter financial conditions weigh on dollar-denominated commodity prices and can pressure risk assets, while the lack of clear further easing reduces the macro support for commodities.
afr.comJonathan ShapiroJul 31, 2019After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% over 20.
After 273 past bearish macro events, Soybeans moved a median -0.4% over 5 sessions (44% higher; middle half -2.4% to +1.4%), and -0.5% 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.
