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Capital Economics says the New Year rebound in commodities and riskier assets, helped by a more dovish Fed that weakened the dollar in January, is likely to lose momentum. It expects slower global growth to dampen market optimism and drive renewed price weakness later in the year.
A weaker dollar supports dollar-priced commodities, but expected softening in global growth implies downside risk to feed ingredient prices later in 2019.
capitaleconomics.comCapital Economics EconomistFeb 1, 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.
