# BUZZ COMMENT-Oil and Fed should define next year's FX trends

> A Reuters currency commentary expects oil prices to keep falling and the Federal Reserve to begin raising rates. It projects about 125 basis points of hikes by the end of 2023.

- Date: 2021-12-02 · published 2021-12-02T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/43490-buzz-comment-oil-and-fed-should-define-next-year-s-fx-trends
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Weaker oil and tighter Fed policy would push up the dollar and weigh on commodity-linked currencies, reducing the energy-driven support for agricultural prices.

## Read by commodity

- DXY: bullish ▲
- WTI: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-12-12 | [What led to this fall's oil price slide — and what might come next \| CBC News](https://feedsoft.ai/events/32886-what-led-to-this-fall-s-oil-price-slide-and-what-might-come-next-cbc-news.md) | +1.7% | +0.6% |
| WTI | 2020-09-10 | [Covid and trade war fears drop oil and fuel prices - Container News](https://feedsoft.ai/events/10505-covid-and-trade-war-fears-drop-oil-and-fuel-prices-container-news.md) | +5.6% | +4.8% |
| WTI | 2025-04-04 | [US refiners' shares hit near two-year lows as Trump tariffs spur fuel demand fears](https://feedsoft.ai/events/12523-us-refiners-shares-hit-near-two-year-lows-as-trump-tariffs-spur-fuel-demand.md) | -10.2% | -12.0% |
| WTI | 2018-02-12 | [Canadian Dollar's Correlation to Oil is Back, and this Could Spell Downside](https://feedsoft.ai/events/66729-canadian-dollar-s-correlation-to-oil-is-back-and-this-could-spell-downside.md) | +4.4% | +3.6% |
| WTI | 2022-06-14 | [Oil prices settle down on fears of Fed and oil profit tax](https://feedsoft.ai/events/41135-oil-prices-settle-down-on-fears-of-fed-and-oil-profit-tax.md) | -8.6% | -19.2% |
| DXY | 2016-12-14 | [Fed surprises with three rate hikes next year — and could need more](https://feedsoft.ai/events/6464-fed-surprises-with-three-rate-hikes-next-year-and-could-need-more.md) | +1.6% | +0.9% |
| DXY | 2020-09-23 | [Dollar Strengthens; Helped by Housing Data and Fed Comments](https://feedsoft.ai/events/7700-dollar-strengthens-helped-by-housing-data-and-fed-comments.md) | +0.8% | -1.4% |
| DXY | 2018-10-03 | [US dollar strengthens after Fed comments - The Business Times](https://feedsoft.ai/events/62721-us-dollar-strengthens-after-fed-comments-the-business-times.md) | +0.6% | +2.3% |

## Sources

- reuters.com: https://www.reuters.com/markets/asia/buzz-comment-oil-fed-should-define-next-years-fx-trends-2021-12-02/

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