# Euro, sterling bounce, dollar drops as investors cash in

> The euro and sterling rebounded while the dollar fell on Monday, as investors took profits after reports that China would make substantial changes to its COVID-19 policy in coming months. Analysts said the dollar move was likely more about positioning than fundamentals.

- Date: 2022-11-07 · published 2022-11-07T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/6252-euro-sterling-bounce-dollar-drops-as-investors-cash-in
- 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 weaker dollar on expectations of Chinese reopening can modestly support dollar-denominated commodity prices, though the effect is largely sentiment-driven.

## Read by commodity

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

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2022-11-14 | 5 | -2.9% | -4.2 | Dollar fell on Nov 7 on profit-taking and China COVID policy reports, part of the early-window decline. |
| EURUSD | 2022-11-14 | 5 | +4.5% | 3.9 | On Nov 7 the euro rebounded as profit-taking and China COVID-policy reopening reports lifted risk sentiment and weakened the dollar, adding to the start of the window's gains. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2025-06-26 | [Dollar drops to lowest since 2021 against euro, sterling](https://feedsoft.ai/events/24414-dollar-drops-to-lowest-since-2021-against-euro-sterling.md) | -0.9% | -0.6% |
| DXY | 2019-10-18 | [Dollar weak as Brexit deal boosts euro; sterling in check](https://feedsoft.ai/events/56788-dollar-weak-as-brexit-deal-boosts-euro-sterling-in-check.md) | -0.1% | +0.2% |
| DXY | 2025-03-07 | [Dollar dives as bull case weakens but some investors expect a bounce](https://feedsoft.ai/events/9707-dollar-dives-as-bull-case-weakens-but-some-investors-expect-a-bounce.md) | -0.1% | -1.1% |
| DXY | 2025-07-16 | [Sterling edges higher versus dollar as investors await jobs data](https://feedsoft.ai/events/24024-sterling-edges-higher-versus-dollar-as-investors-await-jobs-data.md) | -0.7% | -0.2% |
| DXY | 2017-01-30 | [Dollar drops vs yen as investors react to Trump travel ban](https://feedsoft.ai/events/73206-dollar-drops-vs-yen-as-investors-react-to-trump-travel-ban.md) | -1.2% | -1.2% |
| EURUSD | 2019-10-18 | [Dollar weak as Brexit deal boosts euro; sterling in check](https://feedsoft.ai/events/56788-dollar-weak-as-brexit-deal-boosts-euro-sterling-in-check.md) | -0.3% | -0.7% |
| EURUSD | 2025-03-07 | [Dollar dives as bull case weakens but some investors expect a bounce](https://feedsoft.ai/events/9707-dollar-dives-as-bull-case-weakens-but-some-investors-expect-a-bounce.md) | +0.4% | +2.2% |
| EURUSD | 2024-01-31 | [Pound pares advance against Euro and Dollar as investors position for Bank of England By PoundSterlingLIVE](https://feedsoft.ai/events/32370-pound-pares-advance-against-euro-and-dollar-as-investors-position-for-bank-of.md) | -0.9% | -0.0% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/dollar-gains-china-sticks-stringent-covid-policy-souring-risk-sentiment-2022-11-07/

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