# Dollar Tipped to Remain in Demand Following Fed

> Analysts expected the dollar to stay in demand after the Fed brought forward its rate hike projections to 2023. EUR/USD dipped below 1.20, and the dollar index recorded its biggest one-day gain since March 2020.

- Date: 2021-06-17 · published 2021-06-17T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/6133-dollar-tipped-to-remain-in-demand-following-fed
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Continued dollar strength after the Fed shift keeps dollar-priced feed commodities under pressure and can reduce US export competitiveness.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2021-06-17 | 1 | -1.7% | -5.4 | Fed brought forward its rate hike projections and the dollar index posted its biggest one-day gain since March 2020, a mechanism that pushed EUR/USD below 1.20. |
| DXY | 2021-06-17 | 1 | +1.3% | 5.6 | Notes the dollar's biggest one-day gain since March 2020 after the Fed brought rate hike projections forward to 2023. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-11-14 | [Dollar Rises Against Euro and Yen Following Fed Commentary](https://feedsoft.ai/events/38896-dollar-rises-against-euro-and-yen-following-fed-commentary.md) | -0.7% | -1.6% |
| DXY | 2019-05-24 | [ING: U.S. Dollar to Remain Supported as Markets for a Fed Rate Cut are Misplaced](https://feedsoft.ai/events/59252-ing-u-s-dollar-to-remain-supported-as-markets-for-a-fed-rate-cut-are-misplaced.md) | +0.4% | -1.2% |
| DXY | 2024-01-26 | [Ringgit Dips On Increasing Demand For U.S. Dollar](https://feedsoft.ai/events/32375-ringgit-dips-on-increasing-demand-for-u-s-dollar.md) | -0.4% | +0.2% |
| DXY | 2021-09-30 | [Dollar near one-year high as Fed tightening in focus \| Reuters](https://feedsoft.ai/events/45253-dollar-near-one-year-high-as-fed-tightening-in-focus-reuters.md) | +0.0% | -1.1% |
| DXY | 2023-05-22 | [Dollar gains against yen as Fed policy and debt ceiling in focus - Reuters](https://feedsoft.ai/events/36140-dollar-gains-against-yen-as-fed-policy-and-debt-ceiling-in-focus-reuters.md) | +0.7% | -0.7% |
| EURUSD | 2022-11-14 | [Dollar Rises Against Euro and Yen Following Fed Commentary](https://feedsoft.ai/events/38896-dollar-rises-against-euro-and-yen-following-fed-commentary.md) | +1.7% | +3.6% |
| EURUSD | 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) | +0.0% | +0.7% |
| EURUSD | 2021-12-14 | [Cash Glut in Eurozone Drives Dollar Demand - WSJ](https://feedsoft.ai/events/43831-cash-glut-in-eurozone-drives-dollar-demand-wsj.md) | 0.0% | +1.2% |

## Sources

- poundsterlinglive.com: https://www.poundsterlinglive.com/eurusd/15551-dollar-tipped-to-remain-in-demand-following-fed

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