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The dollar surged to an 11-month high against a basket of major currencies as U.S. bond yields and inflation expectations rose after Trump's election win. The yuan hit its weakest level since before its offshore market launched in 2010, while the yen and euro also fell.
A broad dollar rally and weaker Asian currencies raise the cost of dollar-priced commodity imports in those markets, which can cut demand and pressure grain and meal prices.
reuters.comNov 14, 2016After 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 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
Not enough comparable past events yet for a historical read.
After 533 past bearish macro events, Euro (USD per EUR) moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% 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.
The dollar surged to an 11-month high on 2016-11-14 as US bond yields and inflation expectations rose, with the euro falling in the same session.
Same-day dollar surge to an 11-month high on rising US yields and inflation expectations, with the yuan hitting its weakest level, directly explains the USD/CNY jump.
Dollar surged to an 11-month high on 11/14 as bond yields and inflation expectations rose after Trump's win, driving the 5-day gain directly.
Dollar hit an 11-month high on Nov 14 as US yields and inflation expectations rose post-election, with the euro falling, directly matching the move.
The dollar surged to an 11-month high on a bond rout and rising US yields, and the yuan hit its weakest level since 2010, matching the window's end date.
