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Investors bet that Donald Trump's expected fiscal loosening would spark a global reflation trade, with rising prices and market interest rates in the US. Nomura's strategy teams said growth needed to accompany the rise in inflation and rates.
Reflation expectations raise US yields and the dollar, which can weigh on dollar-denominated commodity prices. Stronger growth expectations would partly offset this by supporting livestock and feed demand.
reuters.comNov 11, 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.
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.
