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The dollar has gained on expectations that the US central bank will be more hawkish than its peers. The Fed is expected to raise rates by 50 basis points at its May 3-4 meeting, with further increases expected in June and July.
Growth concerns are weighing on the euro.
Expected Fed hikes widen the rate gap with other central banks, supporting the dollar and weighing on dollar-priced commodities. Weak euro conditions also reduce European import demand for US feed inputs.
brecorder.comReutersApr 28, 2022
reuters.comKaren BrettellApr 27, 2022After 301 past bearish macro events, CORN moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% over 20.
After 2,356 past bullish macro events, DXY moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
After 533 past bearish macro events, EURUSD moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Dollar strength on hawkish Fed expectations (50bp in May, more in June/July) and euro-zone growth concerns widened the rate differential and pushed EUR/USD lower.
Dollar hit multi-year highs on expectations of a more hawkish Fed than peers, with euro growth concerns adding to USD demand.
