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The dollar index fell on May 23, 2022 while the euro rose about 1.1% to $1.0687 after ECB President Christine Lagarde signaled the bank would likely lift its deposit rate out of negative territory by end-September. Lagarde also said further hikes were possible if inflation stabilized near 2%.
Riskier assets gained as recession fears eased.
A firmer euro and weaker dollar make dollar-priced US commodities relatively cheaper for European buyers, which modestly supports US export demand for feed grains and meals. The move is a currency-driven shift rather than a change in physical supply.
reuters.comSinead CarewMay 23, 2022After 388 past bullish macro events, EURUSD moved a median +0.3% over 5 sessions (62% higher; middle half -0.4% to +1.1%), and +0.1% over 20.
After 1,637 past bearish macro events, DXY moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Lagarde signaled the ECB would lift its deposit rate out of negative territory by end-September, lifting the euro about 1.1% on May 23, the final day of the window, while the dollar index fell.
