# Dollar driven by rate outlook rather than trade fears | Capital Economics

> Capital Economics argues the US dollar is currently being driven more by interest rate expectations than by trade fears. The article is a short analyst note with little detail beyond that view.

- Date: 2018-06-22 · published 2018-06-22T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/64753-dollar-driven-by-rate-outlook-rather-than-trade-fears-capital-economics
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer dollar on rate expectations lowers the local-currency cost of dollar-priced grains and meal for importers, which weighs on US export prices.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-06-18 | [Fed surprise points to further dollar strength \| Capital Economics](https://feedsoft.ai/events/5931-fed-surprise-points-to-further-dollar-strength-capital-economics.md) | -0.2% | +0.4% |
| DXY | 2024-10-22 | [Dollar climbs with US rates on economic outlook - Business & Finance - Business Recorder](https://feedsoft.ai/events/28055-dollar-climbs-with-us-rates-on-economic-outlook-business-and-finance-business.md) | +0.3% | +1.5% |
| DXY | 2018-09-27 | [Dollar rises on Fed rate outlook; euro falls on Italian budget woes](https://feedsoft.ai/events/63247-dollar-rises-on-fed-rate-outlook-euro-falls-on-italian-budget-woes.md) | +0.4% | +1.6% |
| DXY | 2018-09-28 | [Dollar gains on euro woes, Fed rate outlook](https://feedsoft.ai/events/63239-dollar-gains-on-euro-woes-fed-rate-outlook.md) | +0.6% | +1.3% |
| DXY | 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) | +1.6% | +1.1% |

## Sources

- capitaleconomics.com: https://www.capitaleconomics.com/clients/publications/canada-economics/canada-economics-weekly/dollar-driven-by-rate-outlook-rather-than-trade-fears

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