China Macroeconomics & Academia

Christopher Balding

FX & Rates

<p>There are two contradictory thesis in the foreign exchange and commodities markets. They are that a stronger dollar equates with higher commodity prices and that commodity prices are driven primarily by China. Given the negative correlation between the USD and the CNY, both thesis cannot both be true in their purest forms.</p><p>Major commodities in the Chinese market have had a large upturn in the past year following a price surge beginning around October 2016. That initial momentum was sustained…</p>

There are two contradictory thesis in the foreign exchange and commodities markets. They are that a stronger dollar equates with higher commodity prices and that commodity prices are driven primarily by China. Given the negative correlation between the USD and the CNY, both thesis cannot both be true in their purest forms.Major commodities in the Chinese market have had a large upturn in the past year following a price surge beginning around October 2016. That initial momentum was sustained…

Triangulating the RMB, USD, and Commodities