# A weak dollar is impacting an uneven global market recovery

> The dollar is near its lowest level in more than two years after the Fed signalled it will let inflation run hot and keep rates near zero for an extended period. Stock markets in the eurozone and Japan have lagged US equities because of currency appreciation.

- Date: 2020-08-31 · published 2020-08-31T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/51828-a-weak-dollar-is-impacting-an-uneven-global-market-recovery
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

A weaker dollar supports dollar-denominated commodity prices and export competitiveness for US goods, while stronger currencies in the eurozone and Japan weigh on their export-driven economies.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲
- USDJPY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-06-29 | [Dollar Bull Market Is Over](https://feedsoft.ai/events/70708-dollar-bull-market-is-over.md) | +0.3% | -1.7% |
| DXY | 2021-02-18 | [Current US dollar rally is a bear market correction – ING — Octa](https://feedsoft.ai/events/48820-current-us-dollar-rally-is-a-bear-market-correction-ing-octa.md) | -0.3% | +1.0% |
| DXY | 2017-08-25 | [Euro climbs after Draghi says global recovery is firming up](https://feedsoft.ai/events/69664-euro-climbs-after-draghi-says-global-recovery-is-firming-up.md) | -0.3% | -0.9% |
| DXY | 2020-05-28 | [Dollar weak as improved risk appetite, EU recovery fund hopes lift euro](https://feedsoft.ai/events/53349-dollar-weak-as-improved-risk-appetite-eu-recovery-fund-hopes-lift-euro.md) | -1.9% | -1.3% |
| DXY | 2020-12-01 | [Why the U.S. dollar is trading at a 2 1/2-year low - MarketWatch](https://feedsoft.ai/events/49845-why-the-u-s-dollar-is-trading-at-a-2-1-2-year-low-marketwatch.md) | -1.2% | -1.7% |
| EURUSD | 2017-08-25 | [Euro climbs after Draghi says global recovery is firming up](https://feedsoft.ai/events/69664-euro-climbs-after-draghi-says-global-recovery-is-firming-up.md) | +0.8% | +1.4% |
| EURUSD | 2020-05-28 | [Dollar weak as improved risk appetite, EU recovery fund hopes lift euro](https://feedsoft.ai/events/53349-dollar-weak-as-improved-risk-appetite-eu-recovery-fund-hopes-lift-euro.md) | +2.5% | +2.8% |
| EURUSD | 2020-12-01 | [Why the U.S. dollar is trading at a 2 1/2-year low - MarketWatch](https://feedsoft.ai/events/49845-why-the-u-s-dollar-is-trading-at-a-2-1-2-year-low-marketwatch.md) | +1.6% | +2.8% |

## Sources

- axios.com: https://www.axios.com/2020/08/31/weak-dollar-global-recovery-central-bank-policy

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