Dollar index gains from commodity weakness

“The dollar index should gain from the fact that the Fed will have to continue raising interest rates as its objective of reducing inflation is far from being achieved”, says the company's Energy and Macroeconomics analyst, Heitor Paiva. According to him, this explains why the positioning in the US dollar has been increasing and limiting that of the commodities market.

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“The job market remains very tight in the USA, especially because the labor participation rate decreased after 2020”, observes Paiva. “With fewer people working or looking for work, labor supply will remain tight and could make labor costs resilient to a financial tightening by the Fed,” he says.

The information is from hEDGEpoint Global Markets.

By: Aline Merladete | agrolink