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The Federal Reserve announced it will revise its trade-weighted dollar indexes starting February 2019, changing the weighting scheme and country composition. The note explains the index construction and the motives for the changes.
Changes to the dollar index methodology alter how dollar moves are measured for trade effects, but do not themselves move commodity prices.
federalreserve.govBastian von Beschwitz, Christopher G. Collins, Deepa D. DattaJan 15, 2019After 139 past report events, US Dollar (Broad) moved a median -0.1% over 5 sessions (47% higher; middle half -0.5% to +0.4%), and +0.1% 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.
