# EUR/USD drops under 1.2000 as Powell send US bond yields flying - Forex Crunch

> EUR/USD fell below 1.2000, down about 0.6% on the day, after Fed Chair Powell's remarks at a WSJ event failed to meet market expectations. US 10-year yields rose to above 1.53% and the dollar strengthened as US stocks dropped.

- Date: 2021-03-04 · published 2021-03-04T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/11416-eur-usd-drops-under-1-2000-as-powell-send-us-bond-yields-flying-forex-crunch
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Higher US yields and a firmer dollar tend to weigh on dollar-priced commodities and strengthen the dollar index, which can pressure US export prices for feed grains and meals.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2021-03-05 | 1 | -1.1% | -3.2 | Powell's remarks on March 4 sent US yields higher and EUR/USD below 1.20, setting up the follow-through decline on March 5. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2021-02-26 | [EUR/USD set to end the week on a sour note, drops sharply back below 1.2100 - Forex Crunch](https://feedsoft.ai/events/9591-eur-usd-set-to-end-the-week-on-a-sour-note-drops-sharply-back-below-1-2100.md) | -1.5% | -3.7% |
| EURUSD | 2018-08-10 | [It took Turkey to send EUR/USD to new 2018 lows - Forex Crunch](https://feedsoft.ai/events/11067-it-took-turkey-to-send-eur-usd-to-new-2018-lows-forex-crunch.md) | -1.5% | +0.1% |
| EURUSD | 2021-03-05 | [EUR/USD: NFP and stimulus to give the greenback another boost after Powell's powerful impact - Forex Crunch](https://feedsoft.ai/events/11419-eur-usd-nfp-and-stimulus-to-give-the-greenback-another-boost-after-powell-s.md) | -0.6% | -2.3% |
| EURUSD | 2021-02-26 | [EUR/USD Falls Steeply; Could Drop Below 1.2000 As ECB Policymaker Calls for PEPP Acceleration](https://feedsoft.ai/events/9590-eur-usd-falls-steeply-could-drop-below-1-2000-as-ecb-policymaker-calls-for-pepp.md) | -1.5% | -3.7% |
| EURUSD | 2019-04-29 | [EUR/USD: US Dollar weakness potential limited by ECB - Danske Bank - Forex Crunch](https://feedsoft.ai/events/59798-eur-usd-us-dollar-weakness-potential-limited-by-ecb-danske-bank-forex-crunch.md) | +0.3% | +0.4% |
| DXY | 2021-02-26 | [EUR/USD set to end the week on a sour note, drops sharply back below 1.2100 - Forex Crunch](https://feedsoft.ai/events/9591-eur-usd-set-to-end-the-week-on-a-sour-note-drops-sharply-back-below-1-2100.md) | +0.7% | +1.9% |
| DXY | 2018-08-10 | [It took Turkey to send EUR/USD to new 2018 lows - Forex Crunch](https://feedsoft.ai/events/11067-it-took-turkey-to-send-eur-usd-to-new-2018-lows-forex-crunch.md) | +1.1% | +1.1% |
| DXY | 2021-03-05 | [EUR/USD: NFP and stimulus to give the greenback another boost after Powell's powerful impact - Forex Crunch](https://feedsoft.ai/events/11419-eur-usd-nfp-and-stimulus-to-give-the-greenback-another-boost-after-powell-s.md) | +0.2% | +0.9% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2021/03/04/eur-usd-drops-under-1-2000-as-powell-send-us-bond-yields-flying/

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