Deviating Commodity Prices Will Prevail

A much-needed increase in global risk appetite was provided by Jerome Powell’s less hawkish remarks and the relaxation of some of China’s pandemic-related restrictions

In the past fortnight, the dollar traded strong, supported by safe haven purchases, as China’s increasing virus outbreak and a string of street protests in a rare display of defiance stoked concerns about a government crackdown and an uneven economic recovery. The government, however, moved swiftly and imposed a sizeable police presence, censoring social media and making some minor concessions. Investors’ worries were also eased by the steps taken to support the real estate market which is in trouble and poses a threat to the Chinese financial system.