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Will Corn price jump higher if the US Dollar Falls?

by John Knobel

 

US Federal Open Market Committee (FOMC) Meeting Minutes  Due Tonight at 18:00 GMT

  • The release of the September meeting minutes will give investors and traders insight into the thinking behind the September interest rate cut;
  • Traders will read through the minutes to find clues about the future direction of interest rates;
  • The release of the September meeting minutes will be a main driver for the USD price direction over the next 72 hours;

Moves in the US Dollar Tend to Effect Commodity Prices

  • a stronger USD can hold down the price of corn; while,
  • a weaker USD can boost the price of corn;
  • a weaker USD creates more demand for USD priced commodities making these commodities cheaper for non-USD buyers;

Source: FXGM / Bloomberg