# Trapdoor for dollar, red flag for Fed

> The dollar index rose nearly 30% from early 2021 lows to a September 2022 20-year peak, and is now expected to reverse as the Fed tightening campaign nears its end. Futures price a couple more modest hikes, a terminal rate just under 5% by mid-year, then about half a point of cuts in the second half.

- Date: 2023-01-18 · published 2023-01-18T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/37973-trapdoor-for-dollar-red-flag-for-fed
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of a weaker dollar generally support dollar-priced grains, oilseeds and meals, while easing rate pressure lowers financing costs for storage and trade.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-05-17 | [Dollar retreats as traders focus on Iran, Fed policy](https://feedsoft.ai/events/19471-dollar-retreats-as-traders-focus-on-iran-fed-policy.md) | +0.0% | +0.0% |
| DXY | 2019-06-20 | [US dollar on track for biggest 2-day drop this year on dovish Fed](https://feedsoft.ai/events/58787-us-dollar-on-track-for-biggest-2-day-drop-this-year-on-dovish-fed.md) | -1.1% | -0.8% |
| DXY | 2020-09-11 | [Lower-for-longer rates from the Fed point to a weaker-for-longer dollar](https://feedsoft.ai/events/51287-lower-for-longer-rates-from-the-fed-point-to-a-weaker-for-longer-dollar.md) | -0.4% | +0.2% |
| DXY | 2026-10-21 | [Dollar dips as traders wait on Fed; Aussie gains By Reuters](https://feedsoft.ai/events/650-dollar-dips-as-traders-wait-on-fed-aussie-gains-by-reuters.md) | +0.5% | — |
| DXY | 2022-06-15 | [Dollar dips as Fed hikes rates, flags slowing economy](https://feedsoft.ai/events/7713-dollar-dips-as-fed-hikes-rates-flags-slowing-economy.md) | -0.9% | +2.0% |

## Sources

- reuters.com: https://www.reuters.com/markets/europe/trapdoor-dollar-red-flag-fed-2023-01-18/

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