# Euro Hits August Low as Lagarde’s Rates Talk Diverges From Fed

> The euro fell to its lowest level since June 2025 after weak June PMI data and dovish comments from ECB President Lagarde led traders to pare bets on further rate hikes. The common currency dipped as far as $1.1376 and the cost of hedging euro declines reached its highest since March 2025.

- Date: 2026-07-01 · published 2026-07-01T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/19029-euro-hits-august-low-as-lagarde-s-rates-talk-diverges-from-fed
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker euro strengthens the dollar and can pressure US commodity prices in dollar terms. Importers in Europe may find dollar-priced feed ingredients relatively cheaper.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2024-04-12 | [Euro (EUR USD) Falls to Five-Month Low as ECB-Fed Divergence Looms Large - Bloomberg](https://feedsoft.ai/events/9969-euro-eur-usd-falls-to-five-month-low-as-ecb-fed-divergence-looms-large-bloomberg.md) | -0.6% | +0.5% |
| EURUSD | 2022-07-05 | [Euro Hits 20-Year Low Against Dollar as Markets Slide - The New York Times](https://feedsoft.ai/events/10287-euro-hits-20-year-low-against-dollar-as-markets-slide-the-new-york-times.md) | -3.1% | -1.3% |
| EURUSD | 2025-04-17 | [VIEW ECB cuts rates again to buffer economy from U.S. tariff hit](https://feedsoft.ai/events/25336-view-ecb-cuts-rates-again-to-buffer-economy-from-u-s-tariff-hit.md) | -0.3% | -1.5% |
| EURUSD | 2026-10-01 | [Euro slides to 17-month low, hit by rates and inflation mix](https://feedsoft.ai/events/9648-euro-slides-to-17-month-low-hit-by-rates-and-inflation-mix.md) | -1.4% | -1.6% |
| 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 | 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 | 2024-04-12 | [Euro (EUR USD) Falls to Five-Month Low as ECB-Fed Divergence Looms Large - Bloomberg](https://feedsoft.ai/events/9969-euro-eur-usd-falls-to-five-month-low-as-ecb-fed-divergence-looms-large-bloomberg.md) | +1.1% | +0.5% |
| DXY | 2024-12-24 | [Dollar edges higher as Fed rates view sets direction](https://feedsoft.ai/events/27135-dollar-edges-higher-as-fed-rates-view-sets-direction.md) | +0.8% | -0.1% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2026-06-23/euro-hits-august-low-as-lagarde-s-rates-talk-diverges-from-fed

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