
TD Securities expects the US dollar to stay supported as markets price in further Federal Reserve tightening, with a 25 basis point increase in December fully priced. The bank sees USD/CAD retesting 1.43 and EUR/USD falling below $1.10.
The 10-year Treasury yield reached 5.15% on November 13.
A forecast of continued dollar strength and higher US yields points to pressure on dollar-priced feed commodities and tighter financing for importers. Weaker euro and Canadian dollar against the USD could make US feed supplies relatively cheaper for those buyers.
After 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.