# Synchronized Interest Rate Cuts Would Limit Volatility for a Number of Currencies - Desjardins

> Desjardins economists argue that synchronized interest rate cuts across major economies would reduce currency volatility. They expect rate cuts to start in the second quarter and note that the US dollar could benefit if the Federal Reserve holds while other central banks ease. Several European economies have entered recession.

- Date: 2024-02-29 · published 2024-02-29T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/31915-synchronized-interest-rate-cuts-would-limit-volatility-for-a-number-of
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger US dollar from wider rate differentials would make dollar-priced feed commodities more expensive for importers outside the US. The outlook is macro commentary and does not point to a specific price move.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-03-29 | [US: Sharp rise in long interest rates to impact emerging market currencies - Natixis — Octa](https://feedsoft.ai/events/72189-us-sharp-rise-in-long-interest-rates-to-impact-emerging-market-currencies.md) | +0.5% | +0.1% |
| DXY | 2024-08-28 | [Asian currencies tread water as markets await cues on Fed cuts](https://feedsoft.ai/events/29077-asian-currencies-tread-water-as-markets-await-cues-on-fed-cuts.md) | +0.5% | -0.3% |
| DXY | 2019-09-18 | [Fed cuts interest rates again, gives mixed signals on next move \| Financial Post](https://feedsoft.ai/events/56974-fed-cuts-interest-rates-again-gives-mixed-signals-on-next-move-financial-post.md) | +0.2% | -0.3% |
| DXY | 2025-03-26 | [Fed's Goolsbee sees lower interest rates in a year's time, but warns of uncertainties, FT reports](https://feedsoft.ai/events/25476-fed-s-goolsbee-sees-lower-interest-rates-in-a-year-s-time-but-warns-of.md) | +0.3% | -2.9% |
| DXY | 2017-10-30 | [Trading The FOMC Interest Rate Decision, November 1, 2017 \| Investing.com](https://feedsoft.ai/events/68660-trading-the-fomc-interest-rate-decision-november-1-2017-investing-com.md) | -0.2% | -1.6% |

## Sources

- desjardins.com: https://www.desjardins.com/en/savings-investment/economic-studies/fx-forecasts-february-2024.html

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