# EUR/USD dives with Trump 2.O, Fed policy comes under spotlight

> EUR/USD fell to near 1.0700, its lowest level in over four months, after Trump's election win. The dollar index rose to 105.30. Trump's pledged tariffs and tax cuts were seen as boosting the dollar and raising the risk of a downturn in the euro zone, UK, China and Canada.

- Date: 2024-11-06 · published 2024-11-06T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/5813-eur-usd-dives-with-trump-2-o-fed-policy-comes-under-spotlight
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A firmer dollar and rising downturn risk in major trading partners tend to weaken dollar-priced feed commodity demand and raise import costs for buyers in those markets.

## Read by commodity

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

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2024-11-06 | 1 | -1.7% | -5.8 | Shows EUR/USD falling to its four-month low near 1.0700 as the dollar index rose, with tariffs seen raising downturn risk for the euro zone. |
| DXY | 2024-11-06 | 1 | +0.9% | 3.6 | EUR/USD fell to a four-month low while the dollar index rose, on tariff and tax-cut expectations. |
| EURUSD | 2024-11-13 | 5 | -3.2% | -4.2 | EUR/USD hit a four-month low as the dollar index rose on tariffs and tax-cut expectations, adding to the initial leg down. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-11-06 | [Euro (EUR/USD) Parity Back in Play as Trump Win Spurs Rates Divergence - Bloomberg](https://feedsoft.ai/events/5807-euro-eur-usd-parity-back-in-play-as-trump-win-spurs-rates-divergence-bloomberg.md) | +1.9% | +1.5% |
| DXY | 2024-06-14 | [EUR/USD plummets to 1.0670 as Fed's hawkish policy keeps US Dollar firm](https://feedsoft.ai/events/29980-eur-usd-plummets-to-1-0670-as-fed-s-hawkish-policy-keeps-us-dollar-firm.md) | +0.1% | -1.1% |
| DXY | 2017-11-01 | [U.S. Dollar Edges Higher as Trump Picks Powell to Head Fed - WSJ](https://feedsoft.ai/events/68152-u-s-dollar-edges-higher-as-trump-picks-powell-to-head-fed-wsj.md) | +0.1% | -1.2% |
| DXY | 2024-10-16 | [US dollar rallies on Fed outlook, potential Trump win; inflation weighs on pound](https://feedsoft.ai/events/28053-us-dollar-rallies-on-fed-outlook-potential-trump-win-inflation-weighs-on-pound.md) | +0.7% | +2.8% |
| DXY | 2023-03-07 | [AUD tumbles on heels of divergent RBA and Fed policy outlooks - OFX (US)](https://feedsoft.ai/events/37125-aud-tumbles-on-heels-of-divergent-rba-and-fed-policy-outlooks-ofx-us.md) | +0.3% | -1.0% |
| EURUSD | 2024-11-06 | [Euro (EUR/USD) Parity Back in Play as Trump Win Spurs Rates Divergence - Bloomberg](https://feedsoft.ai/events/5807-euro-eur-usd-parity-back-in-play-as-trump-win-spurs-rates-divergence-bloomberg.md) | -3.2% | -3.2% |
| EURUSD | 2024-06-14 | [EUR/USD plummets to 1.0670 as Fed's hawkish policy keeps US Dollar firm](https://feedsoft.ai/events/29980-eur-usd-plummets-to-1-0670-as-fed-s-hawkish-policy-keeps-us-dollar-firm.md) | -0.6% | +1.5% |
| EURUSD | 2017-08-31 | [EUR/USD still under pressure – Danske Bank — Octa](https://feedsoft.ai/events/69668-eur-usd-still-under-pressure-danske-bank-octa.md) | +0.8% | -1.3% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/eur-usd-plummets-as-trump-announces-victory-in-us-presidential-election-202411060918

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