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US stocks fell more than 2% and the dollar hit a two-year high as investors priced in a series of interest rate hikes to fight inflation. Federal Reserve Chair Jerome Powell signaled a half-point rate increase was being prepared.
Oil fell nearly 2% on the day.
Expectations of aggressive Fed tightening are lifting the dollar, which weighs on dollar-priced commodities and export demand. Lower crude prices also reduce biofuel-linked support for soy oil and corn.
reuters.comPete SchroederApr 22, 2022After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
After 40 past bearish macro events, Soybean Oil moved a median -0.8% over 5 sessions (45% higher; middle half -4.5% to +1.7%), and -1.5% 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.
Risk-off equity selloff and Fed hike pricing on April 22 pushed the dollar higher, setting up the window's gains.
