# What happens when US and euro area monetary policy decouple?

> An ECB blog examines how US monetary policy spills over to the euro area, noting that a surprise US tightening initially weakens the euro and raises euro-area import prices before later dragging down inflation. The analysis covers the divergence between Fed and ECB policy.

- Date: 2025-02-05 · published 2025-02-05T12:00:00.000Z
- Category: macro · region Euro Area · magnitude low
- Page: https://feedsoft.ai/events/26275-what-happens-when-us-and-euro-area-monetary-policy-decouple
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Monetary policy spillovers that move the euro-dollar rate affect the cost of dollar-priced imports such as energy and commodities, which indirectly influences feed input costs in Europe.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2019-03-07 | [Monetary policy decisions](https://feedsoft.ai/events/60310-monetary-policy-decisions.md) | -0.1% | -0.7% |
| EURUSD | 2017-01-19 | [Monetary policy decisions](https://feedsoft.ai/events/73190-monetary-policy-decisions.md) | -0.1% | -0.2% |
| EURUSD | 2019-07-25 | [Monetary policy decisions](https://feedsoft.ai/events/58309-monetary-policy-decisions.md) | -0.1% | -0.4% |
| EURUSD | 2017-07-20 | [Monetary policy decisions](https://feedsoft.ai/events/70184-monetary-policy-decisions.md) | +1.0% | +1.6% |
| EURUSD | 2018-04-26 | [Monetary policy decisions](https://feedsoft.ai/events/65722-monetary-policy-decisions.md) | -1.7% | -4.0% |

## Sources

- ecb.europa.eu: https://www.ecb.europa.eu/press/blog/date/2025/html/ecb.blog20250205~44578cf53f.en.html

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