# Euro plummets to 14-year nadir

> 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.

- Date: 2016-12-15 · published 2016-12-15T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/5968-euro-plummets-to-14-year-nadir
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

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.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2016-12-15 | 1 | -2.6% | -5.6 | 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. |
| DXY | 2016-12-15 | 1 | +1.8% | 5.0 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-05-20 | [EUR/USD to plummet towards 1.15 by year-end – CE — Octa](https://feedsoft.ai/events/47300-eur-usd-to-plummet-towards-1-15-by-year-end-ce-octa.md) | -0.0% | +1.5% |
| DXY | 2016-12-15 | [Euro tumbles to near 14-year low against US dollar](https://feedsoft.ai/events/5966-euro-tumbles-to-near-14-year-low-against-us-dollar.md) | +1.6% | +1.1% |
| DXY | 2018-05-29 | [Euro hits 10-month nadir versus dollare](https://feedsoft.ai/events/65218-euro-hits-10-month-nadir-versus-dollare.md) | +0.2% | +1.5% |
| DXY | 2026-09-29 | [Euro Weakens Further to Over One-Year Low](https://feedsoft.ai/events/17696-euro-weakens-further-to-over-one-year-low.md) | +0.5% | +0.8% |
| DXY | 2020-03-19 | [FOREX-Euro plunges to three-year lows as dollar demand jumps](https://feedsoft.ai/events/6270-forex-euro-plunges-to-three-year-lows-as-dollar-demand-jumps.md) | +0.5% | -0.9% |
| EURUSD | 2021-05-20 | [EUR/USD to plummet towards 1.15 by year-end – CE — Octa](https://feedsoft.ai/events/47300-eur-usd-to-plummet-towards-1-15-by-year-end-ce-octa.md) | -0.1% | -2.5% |
| EURUSD | 2016-12-15 | [Euro tumbles to near 14-year low against US dollar](https://feedsoft.ai/events/5966-euro-tumbles-to-near-14-year-low-against-us-dollar.md) | -2.2% | -0.3% |
| EURUSD | 2018-05-29 | [Euro hits 10-month nadir versus dollare](https://feedsoft.ai/events/65218-euro-hits-10-month-nadir-versus-dollare.md) | +0.3% | +0.2% |

## Sources

- economies.com: https://www.economies.com/forex/eur-usd-news/euro-plummets-to-14-year-nadir-18572

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