# An easing ECB would surely balk at 'Plaza2' idea

> A Reuters column argues that the ECB is still in easing mode while the US economy runs hotter and the Fed is tighter. This gap explains much of the dollar's current strength. The piece also questions whether any coordinated Plaza-style euro rise is realistic.

- Date: 2025-01-31 · published 2025-01-31T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/26728-an-easing-ecb-would-surely-balk-at-plaza2-idea
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

The interest rate gap between the US and euro zone supports the dollar, which tends to pressure dollar-priced commodities. Buyers in euro-linked markets may see lower US grain and oilseed prices in local currency terms.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-05-02 | [What is behind plunging Korean won? - The Korea Times](https://feedsoft.ai/events/41635-what-is-behind-plunging-korean-won-the-korea-times.md) | +0.3% | -1.0% |
| DXY | 2026-03-18 | [Gold Tumbles as Powell’s Inflation Concerns Dash Easing Bets](https://feedsoft.ai/events/20074-gold-tumbles-as-powell-s-inflation-concerns-dash-easing-bets.md) | +0.2% | -1.2% |
| DXY | 2020-10-29 | [Euro falls to four-week low as ECB flags easing in December \| Financial Post](https://feedsoft.ai/events/50839-euro-falls-to-four-week-low-as-ecb-flags-easing-in-december-financial-post.md) | -0.5% | -2.2% |
| DXY | 2022-07-16 | [The Dollar Is Extremely Strong, Pushing Down the World](https://feedsoft.ai/events/40787-the-dollar-is-extremely-strong-pushing-down-the-world.md) | -0.8% | -2.0% |
| DXY | 2018-05-30 | [Worsening Italian crisis batters stock markets and euro](https://feedsoft.ai/events/65216-worsening-italian-crisis-batters-stock-markets-and-euro.md) | +0.0% | +1.0% |
| EURUSD | 2024-12-06 | [ECB would welcome a weaker euro](https://feedsoft.ai/events/27176-ecb-would-welcome-a-weaker-euro.md) | -0.5% | -1.6% |
| EURUSD | 2021-11-23 | [The euro is plunging – and probably won’t bounce back soon](https://feedsoft.ai/events/11260-the-euro-is-plunging-and-probably-won-t-bounce-back-soon.md) | +0.2% | +0.1% |
| EURUSD | 2024-12-12 | [ECB delivers expected easing – Deutsche Bank](https://feedsoft.ai/events/27175-ecb-delivers-expected-easing-deutsche-bank.md) | -0.4% | -2.6% |

## Sources

- reuters.com: https://www.reuters.com/markets/an-easing-ecb-would-surely-balk-plaza2-idea-mike-dolan-2025-01-31/

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