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EUR/USD fell to about 1.0411 on December 15, 2016, a 14-year low, after the Federal Reserve raised rates and projected three hikes for 2017 instead of two. The widening policy gap with the European Central Bank drove investors into the dollar.
A policy-driven dollar rally raises the cost of dollar-priced feed imports for buyers in Europe and other non-US markets, which can dampen demand for US commodities.
economies.comRami HaddadDec 15, 2016After 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.
After 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.
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.
Fed hike and projection of three 2017 hikes widened the US-ECB policy gap, directly driving EUR/USD to a 14-year low on Dec 15.
EUR/USD fell to a 14-year low on Dec 15 as the Fed-ECB policy gap widened; the euro is a large share of the broad dollar index.
