# The correlation between USD and commodities is now gone: Citi

> Citi Research says the long-standing inverse correlation between the US dollar and commodity prices broke down in late 2016 and is unlikely to return. In Q4 2016 the Goldman Sachs Commodity Index rose 9% while the dollar gained about 7%. Citi attributes the divergence to improving risk sentiment and monetary tightening expectations since 2013.

- Date: 2017-03-07 · published 2017-03-07T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/71920-the-correlation-between-usd-and-commodities-is-now-gone-citi
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Buyers can no longer assume a stronger dollar will automatically cheapen feed grains, soymeal and other dollar-priced commodities, so currency moves should be weighed separately from fundamentals.

## Read by commodity

- DXY: neutral
- SOY: neutral
- CORN: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-04-13 | [BIS - The Changing Nexus Between Commodity Prices And The Dollar: Causes And Implications](https://feedsoft.ai/events/36298-bis-the-changing-nexus-between-commodity-prices-and-the-dollar-causes-and.md) | +0.3% | -0.4% |
| DXY | 2021-10-18 | [How does dollar impact inflation? Watch commodities](https://feedsoft.ai/events/44437-how-does-dollar-impact-inflation-watch-commodities.md) | -0.4% | +0.4% |
| DXY | 2024-10-28 | [US jobs and rate calls: impact on currency and commodities \| VT Markets](https://feedsoft.ai/events/27757-us-jobs-and-rate-calls-impact-on-currency-and-commodities-vt-markets.md) | +0.2% | +1.9% |
| DXY | 2017-09-12 | [Does the Weaker Dollar Push Up Commodities Prices?    - WSJ](https://feedsoft.ai/events/68879-does-the-weaker-dollar-push-up-commodities-prices-wsj.md) | +0.5% | +2.0% |
| DXY | 2024-08-30 | [FX Daily: US and eurozone inflation in focus \| articles \| ING THINK](https://feedsoft.ai/events/29011-fx-daily-us-and-eurozone-inflation-in-focus-articles-ing-think.md) | +0.2% | -0.9% |
| CORN | 2018-02-02 | [Relationship between Nitrogen and Natural Gas](https://feedsoft.ai/events/66811-relationship-between-nitrogen-and-natural-gas.md) | +0.7% | +2.8% |
| CORN | 2017-05-09 | [Goldman Sachs: Why the commodities rally might be different this time](https://feedsoft.ai/events/70919-goldman-sachs-why-the-commodities-rally-might-be-different-this-time.md) | +0.6% | +1.9% |
| CORN | 2021-07-23 | [August Fed Tightening Announcement May Not Be Bearish For Commodities \| Investing.com Canada](https://feedsoft.ai/events/45974-august-fed-tightening-announcement-may-not-be-bearish-for-commodities-investing.md) | -1.1% | -2.6% |

## Sources

- cnbc.com: https://www.cnbc.com/2017/03/06/the-correlation-between-usd-and-commodities-is-now-gone-citi.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.