# Pumped-up dollar compounding global liquidity squeeze

> Financial markets are pricing a sharp rise in Fed policy rates toward 3.5% by mid-next year from near zero. Dollar funding rates are expected to stay above 3% for the rest of the decade.

- Date: 2022-04-22 · published 2022-04-22T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/41760-pumped-up-dollar-compounding-global-liquidity-squeeze
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Tighter global dollar liquidity strengthens the dollar and raises financing costs for emerging-market importers, which tends to pressure dollar-priced commodities.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-07-18 | [GLOBAL MARKETS-Dollar's advance puts squeeze on gold, commodities By Reuters](https://feedsoft.ai/events/63943-global-markets-dollar-s-advance-puts-squeeze-on-gold-commodities-by-reuters.md) | +0.0% | +1.3% |
| DXY | 2020-04-03 | [Is there a dollar funding squeeze in China? - Central Banking](https://feedsoft.ai/events/53879-is-there-a-dollar-funding-squeeze-in-china-central-banking.md) | -0.9% | -1.0% |
| DXY | 2025-11-18 | [Liquidity squeeze in the U.S. could weigh on Brazilian real](https://feedsoft.ai/events/22155-liquidity-squeeze-in-the-u-s-could-weigh-on-brazilian-real.md) | +0.7% | -1.0% |
| DXY | 2025-01-14 | [Daily: US dollar: Stronger for longer? \| UBS Global](https://feedsoft.ai/events/26704-daily-us-dollar-stronger-for-longer-ubs-global.md) | -1.3% | -1.2% |
| DXY | 2019-05-10 | [The U.S. Dollar Is Suggesting Global Rates Will Continue To Fall \| Investing.com](https://feedsoft.ai/events/59255-the-u-s-dollar-is-suggesting-global-rates-will-continue-to-fall-investing-com.md) | +0.2% | -0.1% |

## Sources

- reuters.com: https://www.reuters.com/markets/europe/pumped-up-dollar-compounding-global-liquidity-squeeze-2022-04-22/

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