# Forex Market: Dovish Fed spurs dollar's biggest two-day drop in a year

> The U.S. dollar fell against its rivals on June 20, 2019, heading for its biggest two-day drop in a year after the Federal Reserve signaled it could cut rates as early as July. The ECB and RBA had also signaled more stimulus, and higher-yielding currencies such as the Australian dollar and Korean won rallied. Some hedge funds that had built large long-dollar positions before the Fed decision were forced to sell.

- Date: 2019-06-20 · published 2019-06-20T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/7434-forex-market-dovish-fed-spurs-dollar-s-biggest-two-day-drop-in-a-year
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker dollar makes dollar-priced commodities cheaper for foreign buyers, which tends to support export demand and firm prices for feed grains and oilseeds. Expectations of lower U.S. rates also reduce the cost of carrying inventory.

## Read by commodity

- DXY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2019-06-20 | 1 | -0.9% | -4.3 | Dovish Fed signal on rate cuts drove the dollar's biggest two-day drop in a year on June 20, with forced hedge fund long-dollar unwinding amplifying the move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-06-20 | [US dollar on track for biggest 2-day drop this year on dovish Fed](https://feedsoft.ai/events/58787-us-dollar-on-track-for-biggest-2-day-drop-this-year-on-dovish-fed.md) | -1.1% | -0.8% |
| DXY | 2018-01-26 | [Dollar falls, set for biggest monthly drop in nearly 2 years](https://feedsoft.ai/events/10400-dollar-falls-set-for-biggest-monthly-drop-in-nearly-2-years.md) | -0.0% | +1.1% |
| DXY | 2023-11-28 | [US dollar skids to 3-1/2-month low, headed for biggest monthly drop in a year](https://feedsoft.ai/events/33361-us-dollar-skids-to-3-1-2-month-low-headed-for-biggest-monthly-drop-in-a-year.md) | +0.2% | -1.1% |
| DXY | 2020-03-02 | [Forex markets: Dollar dented as coronavirus damage spurs interest rate cut bets](https://feedsoft.ai/events/7169-forex-markets-dollar-dented-as-coronavirus-damage-spurs-interest-rate-cut-bets.md) | -0.8% | +4.0% |
| DXY | 2020-07-30 | [Forex markets: Dollar, U.S. Federal Reserve in focus](https://feedsoft.ai/events/52297-forex-markets-dollar-u-s-federal-reserve-in-focus.md) | -0.3% | -0.5% |

## Sources

- cnbc.com: https://www.cnbc.com/2019/06/20/forex-market-fed-rate-cut-bets-dovish-ecb-in-focus.html

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