# The multiple factors underpinning the renewed strength of the euro against the dollar

> BNP Paribas attributes the euro's renewed strength against the dollar to a return to current account surplus and a narrowing one-year interest rate gap with the U.S. The bank expects the Fed to end its tightening cycle before the ECB and says the euro remains well below its long-term fair value. It also flags that unhedged dollar positions could amplify dollar selling.

- Date: 2023-04-17 · published 2023-04-17T12:00:00.000Z
- Category: macro · region Europe · magnitude low
- Page: https://feedsoft.ai/events/36619-the-multiple-factors-underpinning-the-renewed-strength-of-the-euro-against-the
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Continued dollar weakness would support U.S. dollar-denominated commodity prices and improve export competitiveness for U.S. feed ingredients.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-12-15 | [Sterling falls against dollar and euro on 'dovish' UK rate hike](https://feedsoft.ai/events/38477-sterling-falls-against-dollar-and-euro-on-dovish-uk-rate-hike.md) | -0.5% | +1.5% |
| EURUSD | 2022-09-28 | [Sterling, euro rally against dollar after Bank of England buys UK bonds](https://feedsoft.ai/events/39830-sterling-euro-rally-against-dollar-after-bank-of-england-buys-uk-bonds.md) | +3.8% | +4.7% |
| EURUSD | 2026-08-26 | [Euro: ECB tightening outlook offers support against US Dollar - BNY](https://feedsoft.ai/events/18099-euro-ecb-tightening-outlook-offers-support-against-us-dollar-bny.md) | -0.7% | -2.4% |
| EURUSD | 2023-02-09 | [What's behind the euro's comeback against the US dollar](https://feedsoft.ai/events/37542-what-s-behind-the-euro-s-comeback-against-the-us-dollar.md) | -0.5% | -1.5% |
| EURUSD | 2021-10-28 | [Dollar falls on euro strength after ECB meeting as rates move \| Financial Post](https://feedsoft.ai/events/44744-dollar-falls-on-euro-strength-after-ecb-meeting-as-rates-move-financial-post.md) | -0.1% | -2.6% |
| DXY | 2022-07-28 | [Pound Sterling Extends Gains against Euro and Dollar on post-Fed Relief](https://feedsoft.ai/events/40759-pound-sterling-extends-gains-against-euro-and-dollar-on-post-fed-relief.md) | -0.3% | +0.2% |
| DXY | 2023-12-22 | [Peso strengthens to best rate against the US dollar since August](https://feedsoft.ai/events/32933-peso-strengthens-to-best-rate-against-the-us-dollar-since-august.md) | -0.8% | +1.5% |
| DXY | 2022-09-28 | [Sterling, euro rally against dollar after Bank of England buys UK bonds](https://feedsoft.ai/events/39830-sterling-euro-rally-against-dollar-after-bank-of-england-buys-uk-bonds.md) | -1.8% | -1.5% |

## Sources

- economic-research.bnpparibas.com: https://economic-research.bnpparibas.com/html/en-US/multiple-factors-underpinning-renewed-strength-euro-against-dollar-4/17/2023,48485

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