# Dollar higher as big UK inflation drop hits pound

> The pound weakened against the dollar on December 20 after UK inflation fell to its lowest rate in over two years in November. Markets fully priced a Bank of England cut by May 2024.

- Date: 2023-12-20 · published 2023-12-20T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/32948-dollar-higher-as-big-uk-inflation-drop-hits-pound
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Currency moves of this kind shift the cost of US-priced feed commodities for non-US buyers, though the direct effect on grain and meal prices is small.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-11-30 | [Euro-Dollar Falls on Big Inflation Drop](https://feedsoft.ai/events/33380-euro-dollar-falls-on-big-inflation-drop.md) | +0.6% | -1.2% |
| DXY | 2024-05-01 | [US dollar modestly higher as sticky inflation persists, yen hits 34-year low](https://feedsoft.ai/events/12558-us-dollar-modestly-higher-as-sticky-inflation-persists-yen-hits-34-year-low.md) | -0.7% | -0.7% |
| DXY | 2021-08-11 | [Dollar hits highest since April ahead of inflation test](https://feedsoft.ai/events/45778-dollar-hits-highest-since-april-ahead-of-inflation-test.md) | +0.1% | -0.2% |
| DXY | 2026-06-01 | [Investors expect US dollar to break higher as Fed battles inflation](https://feedsoft.ai/events/19465-investors-expect-us-dollar-to-break-higher-as-fed-battles-inflation.md) | +1.0% | +1.7% |
| DXY | 2024-02-28 | [Dollar bounces before inflation data, bitcoin hits two-year high](https://feedsoft.ai/events/31867-dollar-bounces-before-inflation-data-bitcoin-hits-two-year-high.md) | -0.1% | +0.1% |

## Sources

- cnbc.com: https://www.cnbc.com/2023/12/20/dollar-struggles-on-rate-cut-expectations-yen-on-back-foot.html

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