# Dollar's rally supercharged by diverging US rate outlook

> The US dollar is rallying as sticky inflation leads investors to expect the Federal Reserve to keep rates higher for longer. Markets had priced about 50 basis points of Fed cuts for 2024, down from 150 at the start of the year. The two-year US-German yield spread reached its widest since 2022 as the ECB signaled possible cuts as soon as June.

- Date: 2024-04-15 · published 2024-04-15T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/11277-dollar-s-rally-supercharged-by-diverging-us-rate-outlook
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger dollar makes US-priced grains and feed ingredients more expensive for foreign buyers, which tends to weigh on export demand and prices. Wider rate differentials also draw capital into dollar assets.

## Read by commodity

- DXY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2024-04-16 | 5 | +2.0% | 2.9 | Higher-for-longer Fed repricing and a widening US-German yield spread supported the dollar rally. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-03-27 | [EUR/USD continues lower on diverging interest-rate outlook](https://feedsoft.ai/events/31419-eur-usd-continues-lower-on-diverging-interest-rate-outlook.md) | +0.2% | +1.4% |
| DXY | 2016-12-15 | [Dollar, bond yields advance on Fed rate outlook](https://feedsoft.ai/events/6462-dollar-bond-yields-advance-on-fed-rate-outlook.md) | +1.6% | +1.1% |
| DXY | 2018-09-28 | [Dollar gains on euro woes, Fed rate outlook](https://feedsoft.ai/events/63239-dollar-gains-on-euro-woes-fed-rate-outlook.md) | +0.6% | +1.3% |
| DXY | 2018-10-31 | [Dollar Rally Nearing An End? Plus Our BoE Outlook \| Investing.com ZA](https://feedsoft.ai/events/62803-dollar-rally-nearing-an-end-plus-our-boe-outlook-investing-com-za.md) | -0.6% | -0.0% |
| DXY | 2023-03-02 | [Sterling falls as interest rate outlook and strong dollar weigh](https://feedsoft.ai/events/37124-sterling-falls-as-interest-rate-outlook-and-strong-dollar-weigh.md) | +0.7% | -0.8% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/dollars-rally-supercharged-by-diverging-us-rate-outlook-2024-04-15/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.