# Cash Glut in Eurozone Drives Dollar Demand - WSJ

> Cash-rich eurozone banks are converting euros into dollars before year-end, pushing three-month euro cross-currency basis swaps more negative. That means European traders are paying a premium to obtain dollars.

- Date: 2021-12-14 · published 2021-12-14T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/43831-cash-glut-in-eurozone-drives-dollar-demand-wsj
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Strong year-end dollar demand supports the US dollar, which tends to pressure dollar-denominated commodity prices and makes US exports less competitive for euro buyers.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-09-29 | [High Demand for Dollars in Currency Derivatives Markets](https://feedsoft.ai/events/45258-high-demand-for-dollars-in-currency-derivatives-markets.md) | +0.1% | -0.5% |
| DXY | 2023-05-28 | [The Dollar Is Still King in Europe, and It’s Swaying Interest Rates - WSJ](https://feedsoft.ai/events/36156-the-dollar-is-still-king-in-europe-and-it-s-swaying-interest-rates-wsj.md) | -0.5% | -1.4% |
| DXY | 2022-07-06 | [Dollar gains, euro falls as energy drives currency swings](https://feedsoft.ai/events/10285-dollar-gains-euro-falls-as-energy-drives-currency-swings.md) | +0.7% | -0.5% |
| DXY | 2021-06-17 | [Dollar Tipped to Remain in Demand Following Fed](https://feedsoft.ai/events/6133-dollar-tipped-to-remain-in-demand-following-fed.md) | +1.1% | +1.7% |
| DXY | 2024-11-06 | [Trump comeback drives gains in US stocks and dollar, Treasuries slide](https://feedsoft.ai/events/9517-trump-comeback-drives-gains-in-us-stocks-and-dollar-treasuries-slide.md) | +1.9% | +1.5% |
| EURUSD | 2023-05-28 | [The Dollar Is Still King in Europe, and It’s Swaying Interest Rates - WSJ](https://feedsoft.ai/events/36156-the-dollar-is-still-king-in-europe-and-it-s-swaying-interest-rates-wsj.md) | +0.1% | +2.3% |
| EURUSD | 2022-07-06 | [Dollar gains, euro falls as energy drives currency swings](https://feedsoft.ai/events/10285-dollar-gains-euro-falls-as-energy-drives-currency-swings.md) | -1.8% | -0.6% |
| EURUSD | 2021-06-17 | [Dollar Tipped to Remain in Demand Following Fed](https://feedsoft.ai/events/6133-dollar-tipped-to-remain-in-demand-following-fed.md) | -1.4% | -2.6% |

## Sources

- wsj.com: https://www.wsj.com/economy/central-banking/cash-glut-in-eurozone-drives-dollar-demand-11639477801

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