Obviously, the weaker dollar increases
dollar prices for commodities and other goods.
Not exact matches
Amid generally high
commodity prices, they have been extracting more
dollars for their products and collecting higher profits: realized net farm income stood at $ 4.5 billion in 2010, up 46 % from the previous year.
The decision could help investors in several lawsuits in Manhattan seeking to hold banks liable
for billions of
dollars in damages
for alleged
price - fixing in U.S. Treasuries,
commodities, currencies, derivatives and other rates.
Lower
commodity prices, a stronger
dollar, and a rush to US assets are all good
for the US.
(Bloomberg)-- Donald Trump's plans
for a U.S. construction boom have set off a chain reaction that's invigorated
commodities prices, hammered bonds, buttressed the
dollar and is now ripping into emerging markets.
Three key headwinds
for EM assets have abated lately, with a weakening U.S.
dollar, a rebound in
commodity prices and a recovering Chinese economy.
Global economic forces — the sharp movement of
commodity prices; the Great Recession and the lacklustre global economy in its aftermath; and,
for much of the past decade, a strong Canadian
dollar — battered many of our export industries and splintered their supply chains.
The concerted weakening in
commodity prices already suggests a global force to this economic downturn, while further weakness in the U.S.
dollar would suggest that demand
for U.S. goods and securities was softening even more sharply than internationally.
Contrary to popular belief,
commodity prices are not the best predictor of the future exchange rate
for the Canadian
dollar, according to new research from the C.D. Howe Institute.
«Supported by demand exceeding supply, on the back of multiple years of declining
prices, a peaking
dollar should mark an inflection point
for sustained
commodity recovery,» McGlone says.
As shown in the chart below, signs of economic stabilization in China combined with recovering
commodity prices and a weaker U.S.
dollar created short - term tailwinds
for EM assets.
Following a January rally, the global
commodities complex underwent declines in February before partially recovering in March;
for the first quarter as a whole, the benchmark Thomson Reuters CoreCommodity CRB Index (CRB) gained 0.8 % on a
price - only basis.1 Among the 19 component
commodities tracked by the CRB, advancers had a slight edge over decliners, buoyed by growth in global economies and weakness in the trade - weighted US
dollar, which retreated 2.1 %, according to the Federal Reserve's (Fed's) US Dollar Index.1 Aside from robust gains for a host of agricultural products, oil and gold were also among the commodity wi
dollar, which retreated 2.1 %, according to the Federal Reserve's (Fed's) US
Dollar Index.1 Aside from robust gains for a host of agricultural products, oil and gold were also among the commodity wi
Dollar Index.1 Aside from robust gains
for a host of agricultural products, oil and gold were also among the
commodity winners.
The international demand
for Canadian
dollars appears to have broken from its traditional link to oil and other
commodity prices, the central bank said.
Since Canada is a major exporter of many
commodities, an increase in
prices means that the world is prepared to pay more
for the Canadian
dollars ultimately required to purchase them, thus creating an appreciation in our currency.
We are also seeing an increased tendency
for dollar fluctuations and
commodity price movements to be less tightly linked (essentially an indication that
commodity prices are fluctuating in other countries as well).
This report identifies which of 38 Canadian industries are poised
for success in the new trade era that is characterized by lower
commodity prices, a lower - valued Canadian
dollar,...
For all the talk about slumping
commodities prices against the backdrop of a weaker
dollar, there is copper.
Asian stocks reached
for new all - time highs on Monday, as the US
dollar continued to weaken, boosting both
commodity prices and US export - driven industries.
Rapid growth in global steel demand has also boosted contract
prices for other bulk
commodities; coking coal contract
prices increased, on average, by 25 — 35 per cent in US
dollar terms in recent negotiations, while iron ore contract
prices have risen by close to 20 per cent.
May 3 - Rising costs start to squeeze American businesse CNN Money May 3 - Home
Prices Jump Again And «$ 3 Gas Is Coming»
Dollar Collapse May 3 - Gold
price claws its way higher on Fed meeting and geopolitics Gold - Eagle May 2 - Q&A on SS Central America Gold Coins CoinWeek May 2 - Goldman says case
for owning
commodities has «rarely been stronger» than it is now CNBC May 2 - Gold, Silver See Corrective Bounces Ahead Of FOMC Statement Kitco May 1 - Gold Eagle Sales Still Faltering While Mining Output Collapses — Perfect Storm Daily Coin May 1 - Relentless USD Rally Is Precious Metal Kryptonite GoldSeek Apr 30 - Venezuelan Inflation: The Demise of Fiat Currency in Real Time GoldSilver Apr 30 - Silver Market Update Clive P. Maund Apr 27 - Finest 1913 Liberty Head 5 - cent coin will headline ANA auction Coin World Apr 27 - PCGS security features help police nab suspects in robbery case Coin Update Apr 27 - The Most Famous Coin of Antiquity — the Athenian Owl Coin Week Apr 27 - Gold gains but remains vulnerable after Korean leaders meet Reuters Apr 26 - The Era of Very Low Inflation and Interest Rates May Be Near an End NY Times Apr 26 - What Is Gold: Asset,
Commodity, Currency Or Collectible?
Commodity prices were on fire on Thursday morning, still soaring after comments by Treasury Secretary Steve Mnuchin that the weak
dollar was good
for the U.S. economy.
The tendency
for dealers to trade the Australian
dollar in line with
commodity prices, themselves strongly correlated with US economic growth, may also have contributed to the link, although the correlation of the Australian
dollar with the US
dollar has been significantly higher than its correlation with
commodity prices.
I have been nibbling on this stock
for the past few months as it too had a difficult 2015 with falling
commodity prices hurting ethanol sales, along with a strong
dollar and weakened overseas economies reducing demand
for ADM products.
The recent depreciation of the Australian
dollar and consequent increase in Australian -
dollar commodity prices would generally imply an increase in profits
for mining companies.
Historically, it has been normal
for such periods to be associated with firming
commodity prices and, as a result, a tendency
for international capital markets to find Australian -
dollar assets attractive.
«It seems reasonable to assume that another year of extreme moves in US
dollar (higher) and oil /
commodity prices (lower) would likely continue to drive this negative feedback loop and make it very difficult
for policy makers in emerging markets and developing markets to fight disinflationary forces and intercept downside risks,» the analysts add.
Using global industrial production growth as specified, annual total returns
for 30 country, two regional and world stock indexes, currency spot and one - year forward exchange rates relative to the U.S.
dollar, spot
prices on 19
commodities, total annual returns
for a global government bond index and a U.S. corporate bond index, and country inflation rates as available during 1970 through 2013, they find that: Keep Reading
China's recovery also coincided with a near perfect set - up
for EM assets: a weaker U.S.
dollar, falling bond yields, rising
commodity prices and a more synchronized global expansion.
INVESTORS and dairy farmers are bracing
for the worst from Murray Goulburn as weak
commodity prices, rising debts and the soaring
dollar look set to savage the co-operative's earnings and milk
price forecasts.
WCB chief executive David Lord said strong international dairy
commodity pricing and demand and the declining Australian
dollar were a tailwind
for earnings.
What should have been presented is decade long trends about: farm and processor bank debt; return on equity; full and part - time employment trends; farm and processor business numbers; domestic versus overseas value adding to
commodities; volume and value of imported ingredients and products; international versus Australian processing costs comparisons
for major foods like meats, flour, oils, milk products; and the farm gate
price share of the consumer
dollar for fresh foods like fruit and vegetables, milk, meats, bread, juice, eggs.
Sadly, like many other
commodities, I think we may end up with a tiered market, where the higher end businesses sell better product at higher
prices, but fewer products, and then we'll have the
dollar store version of books, where you get what you pay
for, which
for the most part is junk, but you know, people buy it anyway.
It makes it cheaper
for overseas companies to pay down their
dollar - denominated debt, and they also reap higher
prices for commodity exports, which is big business in emerging markets.
While Brent Crude futures have, as with most other important energy
commodities, been always traded in US
Dollars per barrel, Singapore's pan-Asian multi-product
commodity and currency derivatives exchange - the Singapore Mercantile Exchange (SMX)- currently lists Brent Crude Futures Contracts
priced in Euros [1], in a move to provide alternative, unique hedging strategies, which would benefit participants with Euro - related business considerations
for example.
For example, both the Canadian and Australian
dollar are susceptible to movements in the
prices of
commodities - namely those associated with energy.
Experts attributed the rapid rise in food
prices to several factors including high petroleum
prices, drought in Australia, a weak U.S.
dollar,
commodity speculation, and rising demand
for grain - fed meat by China's rapidly expanding middle class.
Buried beneath billions of
dollars supporting future farm incomes,
commodity prices, agricultural trade, rural development and other farming - related issues is a provision
for renewable energy.
Brazil also recognizes its current challenges: historically low
commodity prices, which undermine the country's resource - focused exports; and a currency that has depreciated compared to the U.S.
dollar, making it difficult
for Brazil and Brazilian businesses to service their debts.
For example, a side effect of a rising
dollar and thereby weakening
commodity prices, is that EM currencies such as the Brazilian Real and Russian Rubble suffer.
U.S. markets have outperformed non-U.S. stocks and bonds
for six years in a row because of anxiety about growth overseas, the rise in the
dollar, and the collapse in
commodity prices.
For example, gold is always
priced in U.S.
dollars, as are soft
commodities such as wheat and grain.