# Latest ECB rate-hike pushback turns euro into falling knife | Reuters

> The euro fell broadly after ECB President Christine Lagarde on Monday effectively ruled out the rate hike in 2022 that money markets had priced in. She said tightening policy now would choke off the economic recovery. The euro was already down over 7% against the dollar that year.

- Date: 2021-11-16 · published 2021-11-16T12:00:00.000Z
- Category: macro · region Europe · magnitude medium
- Page: https://feedsoft.ai/events/11948-latest-ecb-rate-hike-pushback-turns-euro-into-falling-knife-reuters
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of a later ECB hike than the Fed widen the rate gap in favour of the dollar, which pressures dollar-priced commodities and feed import costs in euro-linked markets.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2021-11-16 | 5 | -2.2% | -3.1 | Lagarde's rejection of a 2022 rate hike on Nov 15-16 removed priced-in ECB tightening, sparking broad euro selling within the window. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2021-10-28 | [ECB's Lagarde sees higher inflation; pushes back on rate-hike bets \| Reuters](https://feedsoft.ai/events/7162-ecb-s-lagarde-sees-higher-inflation-pushes-back-on-rate-hike-bets-reuters.md) | -0.1% | -2.6% |
| EURUSD | 2023-09-14 | [Euro Falls After ECB Hikes Interest Rates \| Morningstar](https://feedsoft.ai/events/34316-euro-falls-after-ecb-hikes-interest-rates-morningstar.md) | -0.2% | -1.7% |
| 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 | 2022-06-09 | [Stocks, euro slip as ECB sets rate hikes, CPI looms \| Reuters](https://feedsoft.ai/events/9634-stocks-euro-slip-as-ecb-sets-rate-hikes-cpi-looms-reuters.md) | -3.3% | -5.2% |
| 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% |
| 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% |
| DXY | 2022-06-09 | [Stocks, euro slip as ECB sets rate hikes, CPI looms \| Reuters](https://feedsoft.ai/events/9634-stocks-euro-slip-as-ecb-sets-rate-hikes-cpi-looms-reuters.md) | +2.7% | +3.4% |
| 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% |

## Sources

- reuters.com: https://www.reuters.com/world/europe/latest-ecb-rate-hike-pushback-turns-euro-into-falling-knife-2021-11-16/

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