# Rates Spark: Convergence or divergence | ING THINK

> ING notes that narrowing USD-EUR long-end rate differentials reflect timing issues rather than diverging economic prospects. It says hawkish ECB comments following a sizeable euro zone inflation beat could produce a short-lived rise in euro yields.

- Date: 2021-09-02 · published 2021-09-02T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/45268-rates-spark-convergence-or-divergence-ing-think
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Rate differentials drive currency flows, which affect the dollar and dollar-priced commodities. The analysis is a rates outlook without a direct link to feed supply or price.

## Read by commodity

- DXY: neutral
- EURUSD: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2018-02-26 | [The one interest rate differential that is driving the US dollar \| ING THINK](https://feedsoft.ai/events/66696-the-one-interest-rate-differential-that-is-driving-the-us-dollar-ing-think.md) | +0.1% | +0.5% |
| EURUSD | 2024-07-26 | [How long can the Central Banks’ divergence last \| Amundi Research Center](https://feedsoft.ai/events/29488-how-long-can-the-central-banks-divergence-last-amundi-research-center.md) | -0.7% | +2.3% |
| EURUSD | 2025-12-24 | [EUR/USD steady near 1.1800 amid thin liquidity, policy divergence](https://feedsoft.ai/events/21720-eur-usd-steady-near-1-1800-amid-thin-liquidity-policy-divergence.md) | -0.3% | -0.0% |
| EURUSD | 2024-09-12 | [VIEW ECB delivers second rate cut of the year](https://feedsoft.ai/events/28528-view-ecb-delivers-second-rate-cut-of-the-year.md) | +0.9% | -0.6% |
| EURUSD | 2021-02-18 | [Euro-Dollar Rate, the ECB's Currency Concerns and Two Competing Outlooks for 2021](https://feedsoft.ai/events/48855-euro-dollar-rate-the-ecb-s-currency-concerns-and-two-competing-outlooks-for-2021.md) | +0.8% | -1.1% |
| DXY | 2018-02-26 | [The one interest rate differential that is driving the US dollar \| ING THINK](https://feedsoft.ai/events/66696-the-one-interest-rate-differential-that-is-driving-the-us-dollar-ing-think.md) | +0.6% | -0.3% |
| DXY | 2023-11-15 | [Asia FX Outlook 2024: Event risk could dominate \| articles \| ING THINK](https://feedsoft.ai/events/33436-asia-fx-outlook-2024-event-risk-could-dominate-articles-ing-think.md) | -0.9% | -0.2% |
| DXY | 2024-07-10 | [Why the Fed cutting interest rates may weaken the U.S. dollar](https://feedsoft.ai/events/29459-why-the-fed-cutting-interest-rates-may-weaken-the-u-s-dollar.md) | -0.6% | +0.2% |

## Sources

- think.ing.com: https://think.ing.com/articles/rates-spark-convergence-or-divergence/

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