# Dollar climbs to strongest since 2003 on Fed path; bonds drop - Moneyweb

> The dollar climbed to its highest level against the euro since 2003 on December 15, 2016, after the Fed signalled three rate rises in 2017. US 10-year yields reached a two-year high while gold fell to a 10-month low and European bonds declined.

- Date: 2016-12-14 · published 2016-12-14T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/5972-dollar-climbs-to-strongest-since-2003-on-fed-path-bonds-drop-moneyweb
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A broad dollar rally and higher US yields tend to pressure dollar-priced commodities, including gold and agricultural products, while raising import costs abroad.

## Read by commodity

- DXY: bullish ▲
- SOY: bearish ▼
- CORN: bearish ▼
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2016-12-15 | 1 | +1.8% | 5.0 | The dollar hit its strongest level against the euro since 2003 on Dec 15 as US yields rose after the Fed, matching the one-day move. |
| EURUSD | 2016-12-15 | 1 | -2.6% | -5.6 | Dollar hit its strongest level versus the euro since 2003 as the Fed signalled three hikes and US yields jumped, consistent with the move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2021-12-30 | [Dollar on track for best year since 2015](https://feedsoft.ai/events/43836-dollar-on-track-for-best-year-since-2015.md) | +2.0% | +6.8% |
| SOY | 2021-06-17 | [Dollar surges to two-month high on Fed rate-hike projection](https://feedsoft.ai/events/5930-dollar-surges-to-two-month-high-on-fed-rate-hike-projection.md) | -4.4% | -0.1% |
| SOY | 2016-12-15 | [Dollar, bond yields advance on Fed rate outlook](https://feedsoft.ai/events/6462-dollar-bond-yields-advance-on-fed-rate-outlook.md) | -1.7% | +1.8% |
| SOY | 2021-06-30 | [U.S. dollar posts best month since November 2016; nonfarm payrolls loom \| Financial Post](https://feedsoft.ai/events/46778-u-s-dollar-posts-best-month-since-november-2016-nonfarm-payrolls-loom-financial.md) | +2.0% | +5.3% |
| SOY | 2020-05-14 | [Dollar climbs to 3-week peak; US jobs data shrugged off](https://feedsoft.ai/events/53333-dollar-climbs-to-3-week-peak-us-jobs-data-shrugged-off.md) | +1.3% | +3.6% |
| CORN | 2021-12-30 | [Dollar on track for best year since 2015](https://feedsoft.ai/events/43836-dollar-on-track-for-best-year-since-2015.md) | +2.1% | +4.4% |
| CORN | 2021-06-17 | [Dollar surges to two-month high on Fed rate-hike projection](https://feedsoft.ai/events/5930-dollar-surges-to-two-month-high-on-fed-rate-hike-projection.md) | -2.4% | +2.5% |
| CORN | 2020-09-23 | [Corn ends lower on strong dollar](https://feedsoft.ai/events/11767-corn-ends-lower-on-strong-dollar.md) | -0.0% | +6.4% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2016-12-14/dollar-on-top-as-fed-pulls-the-trigger-asia-index-futures-mixed
- moneyweb.co.za: https://www.moneyweb.co.za/news-fast-news/dollar-climbs-to-strongest-since-2003-on-fed-path-bonds-drop/

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