Home›Commodities›Energy Transition›BNY says weaker dollar has not revived a broad commodi…

BNY says weaker dollar has not revived a broad commodity rally

BNY analyst Geoff Yu says commodity-linked FX buying has faded and institutional investors are still selling metals and miners, pointing to missing global demand.

Reported · Written up by our desk · Energy Transition

FXStreet reported that BNY strategist Geoff Yu said a less hawkish Federal Reserve has weakened the US dollar, but the move has not translated into a broad rally across commodities.

According to Yu, institutional investors remain sellers of metals and miners, while emerging market commodity sovereign debt continues to struggle, and commodity FX buying has faded.

He argued that a sustained recovery would require stronger global demand, particularly from China, saying easier financial conditions alone are not enough without a growth backstop.

Yu added that the earlier setup of a yield advantage over the US and strong Chinese demand boosting export revenues is not returning, and warned that a weaker dollar by itself is unlikely to recreate the commodity trade seen earlier in the year.

More like this

Sources