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Is the rise of the US dollar beneficial to the future ethylene glycol?
The rise of the US dollar index means that the exchange rate between the US dollar and other currencies has risen, which means that the US dollar has appreciated. Therefore, major international commodities are denominated in US dollars, and the corresponding commodity prices should fall. Stocks are good for the overall economy of this country, which can increase the value of money and increase purchasing power. However, it also has an impact on some industries, such as import and export industries. Currency appreciation will increase the price of export commodities, so it will have an impact on the export commodities of some companies. There is a linkage between the trend of the US dollar index and commodity futures. The main commodities in the world are generally denominated in US dollars. The falling or rising of US dollars leads to the rising or falling of the cost in the form of US dollars. Because it effectively increases/decreases the production cost of other exchange rates under the condition of US dollars, it will inevitably lead to the rising or falling of basic commodity prices. Simply put, it is generally inversely proportional, with the dollar rising and commodity futures falling, while the dollar falling and commodity futures rising. The impact on stocks should be less than that on futures.