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MUFG says the Dollar Index weakened early in the week as the dollar traded on the back foot against most major currencies. Markets were positioning ahead of Fed Chair Jerome Powell's first congressional testimony.
MUFG believes US conditions may justify higher rates but doubts any dollar strength would be sustained.
Uncertainty over whether the Fed's tone will lift the dollar affects the currency's direction for US export commodities. The muted outlook means the dollar's influence on feed prices is unlikely to change sharply without a clear policy signal.
exchangerates.org.ukFrançois AuréFeb 28, 2018After 359 past neutral macro events, US Dollar (Broad) moved a median -0.0% over 5 sessions (49% higher; middle half -0.4% 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.
