# Euro, pound drop sharply, dollar jumps after Fed signals upcoming rate hikes |  Cyprus Mail

> The euro and sterling fell sharply against the dollar after the Fed signalled earlier rate hikes, with the dollar reaching almost a two-month high of $1.1984 per euro. Sterling dropped to its lowest since May 7 at $1.39745, and bitcoin fell after the dollar's gain.

- Date: 2021-06-17 · published 2021-06-17T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/6131-euro-pound-drop-sharply-dollar-jumps-after-fed-signals-upcoming-rate-hikes
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

A sharp dollar rally after the Fed's hawkish pivot raises the cost of dollar-priced feed commodities for non-US buyers and can weigh on US commodity prices.

## Read by commodity

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

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2021-06-17 | 1 | -1.7% | -5.4 | Euro fell sharply on 17 June as the Fed signalled earlier rate hikes, with the dollar reaching near two-month highs against the euro. |
| DXY | 2021-06-17 | 1 | +1.3% | 5.6 | The euro and sterling fell sharply versus the dollar on June 17, showing broad USD strength after the Fed signal. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-08-02 | [Dollar jumps vs yen as Fed officials hint more rate hikes coming \| Reuters](https://feedsoft.ai/events/40270-dollar-jumps-vs-yen-as-fed-officials-hint-more-rate-hikes-coming-reuters.md) | +0.4% | +1.7% |
| DXY | 2021-06-16 | [Dollar jumps after Fed pulls interest rate hikes into 2023 \| Reuters](https://feedsoft.ai/events/5929-dollar-jumps-after-fed-pulls-interest-rate-hikes-into-2023-reuters.md) | +1.4% | +1.4% |
| DXY | 2019-07-31 | [Dollar up, stocks tumble after Fed rate outlook as pound stalls \| Malay Mail](https://feedsoft.ai/events/58020-dollar-up-stocks-tumble-after-fed-rate-outlook-as-pound-stalls-malay-mail.md) | +0.9% | +1.8% |
| DXY | 2026-06-18 | [Dollar Rally Extends as Fed Signals Rate Hike Likely in Coming Months - Bloomberg](https://feedsoft.ai/events/11989-dollar-rally-extends-as-fed-signals-rate-hike-likely-in-coming-months-bloomberg.md) | +1.4% | +1.0% |
| DXY | 2016-12-15 | [Dollar charges higher after Fed hikes rates](https://feedsoft.ai/events/6465-dollar-charges-higher-after-fed-hikes-rates.md) | +1.6% | +1.1% |
| EURUSD | 2019-07-31 | [Dollar up, stocks tumble after Fed rate outlook as pound stalls \| Malay Mail](https://feedsoft.ai/events/58020-dollar-up-stocks-tumble-after-fed-rate-outlook-as-pound-stalls-malay-mail.md) | +0.4% | -0.5% |
| EURUSD | 2016-12-15 | [Dollar charges higher after Fed hikes rates](https://feedsoft.ai/events/6465-dollar-charges-higher-after-fed-hikes-rates.md) | -2.2% | -0.3% |
| EURUSD | 2026-09-10 | [Euro slips as dollar rises after ECB rate hike \| MarketScreener](https://feedsoft.ai/events/17698-euro-slips-as-dollar-rises-after-ecb-rate-hike-marketscreener.md) | -0.8% | -3.8% |

## Sources

- cyprus-mail.com: https://cyprus-mail.com/2021/06/17/euro-pound-drop-sharply-dollar-jumps-after-fed-signals-upcoming-rate-hikes

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