Do you think the Fed announcement will change the trajectory for the USD (DXY) heading into year end? and in turn potential provide some strength to the commodities?

Eoin Treacy's view

Thank you for this question which may also be of interest to other subscribers. The Fed’s announcement that the economic activity is moderating suggests that the interest rate differential between the US Dollar and other major currencies like the Euro is unlikely to expand rapidly. That would suggest the rangey environment overall for the Dollar Index may continue a while longer, subject to what happens in Europe and Japan. 

The indication liquidity is likely to remain reasonably abundant is good news for commodities which remain on a recovery trajectory. The unweighted Continuous Commodity Index bounced this week from the region of the trend mean and a sustained move below it would be required to question medium-term recovery potential.