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Andrew Macken explains the recent weakness of the US dollar and strength of the Aussie through global current account imbalances, drawing on Michael Pettis's work. The piece argues that savings and investment gaps between countries drive currency moves.
A weaker USD tends to support dollar-priced commodities, and the analysis suggests the currency trend may persist, which matters for export-linked feed ingredient prices.
livewiremarkets.comAndrew MackenFeb 26, 2018After 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.
Not enough comparable past events yet for a historical read.
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.
