Weaker Dollar Lacks Catalyst for Broad Commodity Rally: BNY
BNY strategist Geoff Yu says a less hawkish Fed has weakened the dollar, but that has not translated into a broad commodity rally.
DXY
BNY strategist Geoff Yu says the dollar has weakened as the Federal Reserve has become less hawkish, but that depreciation has not triggered a broad rally in commodities.
According to Yu, institutional investors remain sellers of metals and miners, and emerging-market commodity sovereign debt continues to struggle.
The commentary highlights that a softer U.S. dollar is not, by itself, acting as a growth catalyst for commodity-linked assets.
Source: FXStreet Forex News