# The Euro sinks on its own rate hike

> EUR/USD fell to a fresh multi-week low near 1.1400 despite the ECB's first rate hike since 2023, which was forced by an energy-driven inflation shock. The eurozone economy is contracting, so the euro remains tied to broad dollar direction.

- Date: 2026-06-19 · published 2026-06-19T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/11515-the-euro-sinks-on-its-own-rate-hike
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Dollar strength against the euro tends to weigh on dollar-denominated commodity prices, while the energy-driven inflation shock raises input costs for feed production. The effect on feed prices is likely modest.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-10-27 | [Euro falls against the dollar after ECB rate hike, U.S. data](https://feedsoft.ai/events/39360-euro-falls-against-the-dollar-after-ecb-rate-hike-u-s-data.md) | -1.9% | +3.3% |
| EURUSD | 2021-06-17 | [Pound-to-Euro Rate Lifts to 1.17 after EUR/USD Sinks on Fed's 'Hawkish' Message](https://feedsoft.ai/events/6134-pound-to-euro-rate-lifts-to-1-17-after-eur-usd-sinks-on-fed-s-hawkish-message.md) | -1.4% | -2.6% |
| EURUSD | 2026-08-26 | [Euro falls despite report signaling ECB rate hike](https://feedsoft.ai/events/18102-euro-falls-despite-report-signaling-ecb-rate-hike.md) | -0.7% | -2.4% |
| EURUSD | 2016-11-30 | [USD EUR Exchange Rate Slides on Italian News \| Euro Exchange Rate News This is](https://feedsoft.ai/events/74037-usd-eur-exchange-rate-slides-on-italian-news-euro-exchange-rate-news-this-is.md) | +0.9% | -2.2% |
| EURUSD | 2026-05-18 | [Euro declines as risk aversion, Fed rate hike odds increase](https://feedsoft.ai/events/19477-euro-declines-as-risk-aversion-fed-rate-hike-odds-increase.md) | -0.2% | -0.2% |
| DXY | 2022-10-27 | [Euro falls against the dollar after ECB rate hike, U.S. data](https://feedsoft.ai/events/39360-euro-falls-against-the-dollar-after-ecb-rate-hike-u-s-data.md) | +0.7% | -2.5% |
| DXY | 2017-03-14 | [Thai gains seen in US rate hike](https://feedsoft.ai/events/72257-thai-gains-seen-in-us-rate-hike.md) | -1.2% | -1.1% |
| DXY | 2026-08-26 | [Euro falls despite report signaling ECB rate hike](https://feedsoft.ai/events/18102-euro-falls-despite-report-signaling-ecb-rate-hike.md) | +0.4% | +1.6% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/the-euro-sinks-on-its-own-rate-hike-202606192201

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