# Fed surprise points to further dollar strength | Capital Economics

> Capital Economics brought forward its forecast for the first Fed rate hike after the FOMC signaled a more optimistic outlook and a shift up in its dot plot projections. The firm now expects a stronger dollar across the board this year.

- Date: 2021-06-18 · published 2021-06-18T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/5931-fed-surprise-points-to-further-dollar-strength-capital-economics
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

A forecast of sustained dollar strength tends to weigh on dollar-denominated commodity prices and supports importers' purchasing power in other currencies.

## Read by commodity

- DXY: bullish ▲
- CORN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-05-30 | [Why dollar strength looks set to go on \| Oxford Economics](https://feedsoft.ai/events/30423-why-dollar-strength-looks-set-to-go-on-oxford-economics.md) | +0.3% | +1.8% |
| DXY | 2018-06-22 | [Dollar driven by rate outlook rather than trade fears \| Capital Economics](https://feedsoft.ai/events/64753-dollar-driven-by-rate-outlook-rather-than-trade-fears-capital-economics.md) | +0.2% | -0.3% |
| DXY | 2020-09-17 | [Yuan falls on dollar strength after Fed's upbeat economic outlook \| Financial Post](https://feedsoft.ai/events/51315-yuan-falls-on-dollar-strength-after-fed-s-upbeat-economic-outlook-financial-post.md) | +1.6% | +0.6% |
| DXY | 2024-01-30 | [Loonie Dips Amid US Dollar Strength; Eyes Fed Rate Decision, Economic Data](https://feedsoft.ai/events/32337-loonie-dips-amid-us-dollar-strength-eyes-fed-rate-decision-economic-data.md) | +0.4% | +0.1% |
| DXY | 2018-10-03 | [US dollar strengthens after Fed comments - The Business Times](https://feedsoft.ai/events/62721-us-dollar-strengthens-after-fed-comments-the-business-times.md) | +0.6% | +2.3% |
| CORN | 2022-01-28 | [Hawkish Fed a headwind for commodity prices \| Capital Economics](https://feedsoft.ai/events/43044-hawkish-fed-a-headwind-for-commodity-prices-capital-economics.md) | +1.3% | +11.5% |
| CORN | 2021-02-28 | [Metals smashed as dollar strengthens](https://feedsoft.ai/events/48548-metals-smashed-as-dollar-strengthens.md) | +0.6% | +5.4% |
| CORN | 2017-09-29 | [Dollar's Gains Pared, but Set to Snap Six Month Losing Streak Against the Euro - Marc to Market  Marc Chandler on Global FX and Capital Markets](https://feedsoft.ai/events/69152-dollar-s-gains-pared-but-set-to-snap-six-month-losing-streak-against-the-euro.md) | +3.1% | +2.4% |

## Sources

- capitaleconomics.com: https://www.capitaleconomics.com/clients/publications/fx-markets/fx-markets-weekly-wrap/fed-surprise-points-to-further-dollar-strength

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