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The Fed cut rates by 25 basis points for the first time since 2008, yet the US dollar rallied. Two FOMC members dissented in favor of no change, and Powell said the cut did not necessarily start a longer easing cycle.
A stronger dollar after a less dovish Fed makes US commodities more expensive for foreign buyers and tends to pressure export demand and dollar-denominated prices.
forexsites.comJul 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.
