# Dollar hits five-year high, growth concerns dent euro

> 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.

- Date: 2022-04-27 · published 2022-04-27T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/7377-dollar-hits-five-year-high-growth-concerns-dent-euro
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

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.

## Read by commodity

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

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2022-04-28 | 5 | -3.1% | -3.9 | 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. |
| DXY | 2022-04-28 | 5 | +2.5% | 4.3 | Dollar hit multi-year highs on expectations of a more hawkish Fed than peers, with euro growth concerns adding to USD demand. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2024-11-28 | [BRL: Real hits four year low on fiscal concerns – ING — Elev8](https://feedsoft.ai/events/27616-brl-real-hits-four-year-low-on-fiscal-concerns-ing-elev8.md) | +1.1% | +6.9% |
| CORN | 2023-05-23 | [Dollar higher as U.S. debt ceiling concerns keep traders nervous](https://feedsoft.ai/events/36173-dollar-higher-as-u-s-debt-ceiling-concerns-keep-traders-nervous.md) | -1.8% | +0.2% |
| CORN | 2016-11-16 | [Dollar hits 14-year high as Trump-fuelled bond sell-off resumes](https://feedsoft.ai/events/9131-dollar-hits-14-year-high-as-trump-fuelled-bond-sell-off-resumes.md) | +2.5% | +3.3% |
| CORN | 2022-05-05 | [Dollar index hits 20-year high, sterling tumbles on dovish BoE](https://feedsoft.ai/events/8318-dollar-index-hits-20-year-high-sterling-tumbles-on-dovish-boe.md) | +6.2% | +0.4% |
| CORN | 2016-11-14 | [Dollar hits 13-1/2 year high, U.S. bond yields gain on Trump stimulus bets](https://feedsoft.ai/events/8328-dollar-hits-13-1-2-year-high-u-s-bond-yields-gain-on-trump-stimulus-bets.md) | -3.6% | -0.7% |
| DXY | 2019-08-31 | [Euro hits two-year low amid trade concerns \| The National](https://feedsoft.ai/events/57799-euro-hits-two-year-low-amid-trade-concerns-the-national.md) | -0.9% | -0.2% |
| DXY | 2024-04-12 | [Dollar jumps on central bank divergence, euro hits five-month low](https://feedsoft.ai/events/9970-dollar-jumps-on-central-bank-divergence-euro-hits-five-month-low.md) | +1.1% | +0.5% |
| DXY | 2021-03-01 | [Dollar index hits 3-week high on US growth hopes](https://feedsoft.ai/events/10062-dollar-index-hits-3-week-high-on-us-growth-hopes.md) | +0.8% | +0.8% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40169904
- reuters.com: https://www.reuters.com/business/finance/dollar-nears-pandemic-peaks-investors-seek-safety-2022-04-27/

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