# Euro hit by bets ECB monetary policy will diverge from major peers – The Irish Times

> The euro fell below $1.13 and hit its lowest level in 16 months as traders bet the ECB would keep accommodative policy while the Fed and Bank of England moved to raise rates. The euro also fell to its weakest level against sterling since February 2020. Bank of America analysts said the market was positioning for a Fed-ECB policy divergence.

- Date: 2021-11-18 · published 2021-11-18T12:00:00.000Z
- Category: macro · region Europe · magnitude medium
- Page: https://feedsoft.ai/events/11950-euro-hit-by-bets-ecb-monetary-policy-will-diverge-from-major-peers-the-irish
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Diverging central bank paths strengthen the dollar against the euro, which tends to weigh on dollar-denominated commodity prices and shifts relative import costs for European feed buyers.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2017-11-07 | [Policy divergence bets drive dollar gains, pull euro lower](https://feedsoft.ai/events/68188-policy-divergence-bets-drive-dollar-gains-pull-euro-lower.md) | +1.4% | +1.6% |
| EURUSD | 2020-12-10 | [ECB boosts economic stimulus package as Covid-19 hits recovery – The Irish Times](https://feedsoft.ai/events/49857-ecb-boosts-economic-stimulus-package-as-covid-19-hits-recovery-the-irish-times.md) | +0.8% | +0.7% |
| EURUSD | 2019-02-15 | [Euro falls after ECB official says fresh round of loans possible – The Irish Times](https://feedsoft.ai/events/60822-euro-falls-after-ecb-official-says-fresh-round-of-loans-possible-the-irish-times.md) | +0.5% | +0.5% |
| EURUSD | 2019-03-06 | [Will The ECB Crush The Euro? \| Investing.com](https://feedsoft.ai/events/60314-will-the-ecb-crush-the-euro-investing-com.md) | -0.2% | -1.0% |
| EURUSD | 2018-04-12 | [Account of the monetary policy meeting](https://feedsoft.ai/events/65690-account-of-the-monetary-policy-meeting.md) | -0.0% | -4.3% |
| DXY | 2024-06-26 | [Dollar Soars to Fresh 2024 High as Fed Diverges From Major Peers](https://feedsoft.ai/events/29963-dollar-soars-to-fresh-2024-high-as-fed-diverges-from-major-peers.md) | +0.3% | -0.3% |
| DXY | 2016-11-23 | [C$ weakens on monetary policy divergence prospects](https://feedsoft.ai/events/74052-c-weakens-on-monetary-policy-divergence-prospects.md) | +0.3% | +1.0% |
| DXY | 2017-11-07 | [Policy divergence bets drive dollar gains, pull euro lower](https://feedsoft.ai/events/68188-policy-divergence-bets-drive-dollar-gains-pull-euro-lower.md) | -0.2% | -0.8% |

## Sources

- irishtimes.com: https://www.irishtimes.com/business/markets/euro-hit-by-bets-ecb-monetary-policy-will-diverge-from-major-peers-1.4732208

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