Commodity currencies lose forecasting power, leading to increased market volatility.
The article looks at how currencies from countries that export a lot of commodities, like Australia and Canada, are connected to the prices of those commodities. The researchers found that these currencies used to be good at predicting commodity prices, but not anymore. Now, they are more closely tied to overall commodity indexes rather than specific commodities. This change might make both currency and commodity markets more unpredictable, so it's important to keep an eye on them.