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The ECB raised its deposit rate by 50 basis points to zero percent, its first increase in 11 years and larger than its own guidance. The move was aimed at tackling inflation and also offered support to heavily indebted euro-area countries.
Higher euro rates narrow the gap with US rates and can lift the euro, which weakens the dollar and gives some support to dollar-priced commodities. Tighter money also raises financing costs for farms and feed mills.
reuters.comBalazs Koranyi, Francesco CanepaJul 21, 2022After 388 past bullish macro events, Euro (USD per EUR) moved a median +0.3% over 5 sessions (62% higher; middle half -0.4% to +1.1%), and +0.1% over 20.
After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
