# Euro-Dollar Parity: It’s All About the Greenback

> The euro fell to its lowest level of 2016 in December, driven mainly by the US Federal Reserve's outlook for three rate hikes in 2017. Two-year Treasury yields rose to their highest since 2009, widening the yield gap with Germany beyond 2 percentage points.

- Date: 2016-12-22 · published 2016-12-22T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/73662-euro-dollar-parity-it-s-all-about-the-greenback
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer dollar driven by Fed tightening tends to pressure US commodity export prices, including grains and oilseeds, making US feed ingredients cheaper for foreign buyers only at the margin while weighing on dollar-denominated prices.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-08-23 | [Euro falls below parity with the dollar. What's the impact? \| AP News](https://feedsoft.ai/events/40249-euro-falls-below-parity-with-the-dollar-what-s-the-impact-ap-news.md) | +0.6% | +0.6% |
| EURUSD | 2022-07-13 | [Explainer: Why the euro's fall below parity versus dollar matters](https://feedsoft.ai/events/40708-explainer-why-the-euro-s-fall-below-parity-versus-dollar-matters.md) | +1.7% | +1.6% |
| EURUSD | 2022-05-19 | [Euro dollar: What does it mean for investors as the pair nears parity?](https://feedsoft.ai/events/41611-euro-dollar-what-does-it-mean-for-investors-as-the-pair-nears-parity.md) | +1.6% | +0.4% |
| EURUSD | 2022-07-19 | [Euro-dollar parity: beyond symbolism](https://feedsoft.ai/events/40715-euro-dollar-parity-beyond-symbolism.md) | +0.5% | +0.3% |
| EURUSD | 2022-06-30 | [Euro to Hit Parity against Dollar by August says Nomura](https://feedsoft.ai/events/41162-euro-to-hit-parity-against-dollar-by-august-says-nomura.md) | -3.0% | -3.0% |
| DXY | 2022-08-23 | [Euro falls below parity with the dollar. What's the impact? \| AP News](https://feedsoft.ai/events/40249-euro-falls-below-parity-with-the-dollar-what-s-the-impact-ap-news.md) | -0.1% | +1.2% |
| DXY | 2022-07-13 | [Explainer: Why the euro's fall below parity versus dollar matters](https://feedsoft.ai/events/40708-explainer-why-the-euro-s-fall-below-parity-versus-dollar-matters.md) | -0.8% | -1.3% |
| DXY | 2022-05-19 | [Euro dollar: What does it mean for investors as the pair nears parity?](https://feedsoft.ai/events/41611-euro-dollar-what-does-it-mean-for-investors-as-the-pair-nears-parity.md) | -0.9% | +0.5% |

## Sources

- wsj.com: https://www.wsj.com/articles/euro-dollar-parity-its-all-about-the-greenback-1482414216?mod=e2tweu

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