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The BIS Quarterly Review reports that markets surged in August on reduced expectations of US monetary tightening, with equities at record highs and credit spreads near their tightest since 2008. It notes the outlook shift put strong downward pressure on the US dollar.
A weaker dollar on slower expected US tightening generally supports dollar-priced commodities and improves export competitiveness for US feed ingredients, though the effect on feed prices is indirect.
bis.orgSep 17, 2017After 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.
