BLBG: Commodity Inflation May Damp Dollar Drop, Barclays Technical Analysts Say
An “explosive” move higher in agricultural commodities markets and rising fixed-income yields show inflation may quicken, potentially stemming the dollar’s declines, a team of Barclays Plc technical analysts said.
“Markets are signaling an outlook for increasing inflation,” Barclays analysts led by Jordan Kotick in New York wrote in a research note to clients today. “This is likely to damp the broader trend of dollar weakness and trigger some profit taking.”
The dollar appreciated 0.3 percent against the euro to $1.3816 as of 7:06 a.m. in London.
To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
