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ECB officials said markets underestimate the odds of rate cuts, pushing the euro lower against the dollar on January 27. EUR/USD held support near 1.2050 as markets began pricing a cut.
Traders were also watching the FOMC meeting later that day for the dollar side of the trade.
Expectations of ECB easing weaken the euro and support the dollar, which can pressure dollar-priced grain and oilseed prices. The effect depends on the Fed's stance and near-term rate expectations.
forex.comGlobal authorJan 27, 2021After 533 past bearish macro events, Euro (USD per EUR) moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
