# EUR/USD: Recent shifts in ECB and Fed rhetoric are bearish for the euro - MUFG - Forex Crunch

> MUFG economists expect the euro to weaken against the dollar after a dovish shift in ECB rhetoric and a hawkish shift in Fed rhetoric. They cite Fabio Panetta's comments that the ECB would not slow asset purchases without sustained inflation, and rising use of the Fed's reverse repo facility.

- Date: 2021-05-27 · published 2021-05-27T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/47298-eur-usd-recent-shifts-in-ecb-and-fed-rhetoric-are-bearish-for-the-euro-mufg
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker euro against the dollar makes U.S. commodities relatively cheaper for euro-based buyers and strengthens the dollar, which tends to weigh on dollar-denominated grain and oilseed prices. The effect is an outlook from analysts rather than a confirmed policy change.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2018-01-29 | [EUR/USD suffers from taper talk, USD recovery - it may be temporary - Forex Crunch](https://feedsoft.ai/events/67191-eur-usd-suffers-from-taper-talk-usd-recovery-it-may-be-temporary-forex-crunch.md) | +0.2% | -1.0% |
| EURUSD | 2016-12-28 | [Euro To Dollar Forecast: Rally In EUR USD Exchange Rate Falters And 2017 Looks Bearish](https://feedsoft.ai/events/73670-euro-to-dollar-forecast-rally-in-eur-usd-exchange-rate-falters-and-2017-looks.md) | +0.2% | +2.2% |
| EURUSD | 2018-08-27 | [Eurozone: Eyes on economic indicators to gauge the ECB's mood - ING - Forex Crunch](https://feedsoft.ai/events/63738-eurozone-eyes-on-economic-indicators-to-gauge-the-ecb-s-mood-ing-forex-crunch.md) | -0.2% | +1.3% |
| EURUSD | 2024-05-29 | [Big moves ahead: ECB’s interest rate cut and the future of EUR/USD](https://feedsoft.ai/events/30469-big-moves-ahead-ecb-s-interest-rate-cut-and-the-future-of-eur-usd.md) | -0.0% | -1.8% |
| EURUSD | 2017-10-27 | [ECB Hammers The Euro, USD To Shine Again - ActionForex](https://feedsoft.ai/events/68674-ecb-hammers-the-euro-usd-to-shine-again-actionforex.md) | -0.2% | +1.8% |
| DXY | 2018-01-29 | [EUR/USD suffers from taper talk, USD recovery - it may be temporary - Forex Crunch](https://feedsoft.ai/events/67191-eur-usd-suffers-from-taper-talk-usd-recovery-it-may-be-temporary-forex-crunch.md) | +0.4% | +1.0% |
| DXY | 2016-12-28 | [Euro To Dollar Forecast: Rally In EUR USD Exchange Rate Falters And 2017 Looks Bearish](https://feedsoft.ai/events/73670-euro-to-dollar-forecast-rally-in-eur-usd-exchange-rate-falters-and-2017-looks.md) | -0.1% | -1.6% |
| DXY | 2019-04-29 | [Dovish Fed unlikely to derail the run in US dollar - TDS - Forex Crunch](https://feedsoft.ai/events/59764-dovish-fed-unlikely-to-derail-the-run-in-us-dollar-tds-forex-crunch.md) | -0.2% | +0.5% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2021/05/27/eur-usd-recent-shifts-in-ecb-and-fed-rhetoric-are-bearish-for-the-euro-mufg/

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