# Dollar drops as treasury yield curve inversion sparks recession fears

> The dollar fell on December 4, 2018, as Treasury yields slipped and the short end of the yield curve inverted, raising recession fears. Markets also read Fed Chair Powell's comments that rates were nearing neutral as a slowdown in rate hikes.

- Date: 2018-12-04 · published 2018-12-04T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/6926-dollar-drops-as-treasury-yield-curve-inversion-sparks-recession-fears
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker dollar and expectations of a slower Fed hiking pace support commodity prices, while recession fears limit demand growth.

## Read by commodity

- DXY: bearish ▼
- USDJPY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-11-18 | [Wall Street forecasts for the U.S. dollar and 10-year Treasury yield in 2022](https://feedsoft.ai/events/43956-wall-street-forecasts-for-the-u-s-dollar-and-10-year-treasury-yield-in-2022.md) | +1.1% | +0.6% |
| 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% |
| DXY | 2024-05-31 | [Dollar Drops as Bond Yields Fall on Hopeful US Inflation Report](https://feedsoft.ai/events/30468-dollar-drops-as-bond-yields-fall-on-hopeful-us-inflation-report.md) | +0.3% | +1.8% |
| DXY | 2024-08-23 | [Stocks surge while Treasury yields, dollars retreat after Fed signals lower rates \| Reuters](https://feedsoft.ai/events/28987-stocks-surge-while-treasury-yields-dollars-retreat-after-fed-signals-lower.md) | -0.1% | -0.8% |
| DXY | 2019-08-28 | [Yen stands tall as US yield curve inversion stokes economic worries](https://feedsoft.ai/events/57808-yen-stands-tall-as-us-yield-curve-inversion-stokes-economic-worries.md) | -0.1% | -0.1% |

## Sources

- en.amwalalghad.com: https://en.amwalalghad.com/dollar-falls-as-us-treasury-yield-curve-inversion-sparks-recession-fears/
- cnbc.com: https://www.cnbc.com/2018/12/04/forex-markets-dollar-the-fed-in-focus.html

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