# Fed rate-cut sign boosts stocks, dollar drops

> World stock markets rose on June 20, 2019, with the S&P 500 hitting a record high and the 10-year Treasury yield dipping below 2%. The dollar weakened after the Fed indicated a marked shift in sentiment toward rate cuts, even though it left rates unchanged. Gold prices rose to near six-year highs.

- Date: 2019-06-20 · published 2019-06-20T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/7435-fed-rate-cut-sign-boosts-stocks-dollar-drops
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Lower yields and a softer dollar tend to support commodity prices broadly, and the move toward easing lowers financing costs for feed-sector inventories. The effect on feed grain prices is indirect and likely modest.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2019-06-20 | 1 | -0.9% | -4.3 | The Fed's shift toward rate cuts pushed Treasury yields below 2% and weakened the dollar while risk assets rallied. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-12-13 | [Dollar drops as Fed signals coming rate cuts](https://feedsoft.ai/events/8296-dollar-drops-as-fed-signals-coming-rate-cuts.md) | -1.0% | -0.7% |
| DXY | 2024-07-31 | [Stocks rise; yields, dollar lower as Fed signals rate cut](https://feedsoft.ai/events/29141-stocks-rise-yields-dollar-lower-as-fed-signals-rate-cut.md) | -0.5% | -1.9% |
| DXY | 2019-05-24 | [Dollar slips as weak data boosts US rate cut bets](https://feedsoft.ai/events/59248-dollar-slips-as-weak-data-boosts-us-rate-cut-bets.md) | +0.4% | -1.2% |
| DXY | 2019-06-20 | [Dollar extends losses on Fed rate cut bets](https://feedsoft.ai/events/7441-dollar-extends-losses-on-fed-rate-cut-bets.md) | -1.1% | -0.8% |
| DXY | 2024-07-31 | [Dollar falls as Fed signals likely September rate cut](https://feedsoft.ai/events/29455-dollar-falls-as-fed-signals-likely-september-rate-cut.md) | -0.5% | -1.9% |
| EURUSD | 2023-12-13 | [Dollar drops as Fed signals coming rate cuts](https://feedsoft.ai/events/8296-dollar-drops-as-fed-signals-coming-rate-cuts.md) | +1.7% | +1.4% |
| EURUSD | 2023-11-16 | [Dollar steady as U.S. jobless claims boost Fed rate cut bets](https://feedsoft.ai/events/10103-dollar-steady-as-u-s-jobless-claims-boost-fed-rate-cut-bets.md) | +0.2% | +1.3% |
| EURUSD | 2023-11-27 | [US dollar weakens as Fed rate cut view weighs](https://feedsoft.ai/events/33364-us-dollar-weakens-as-fed-rate-cut-view-weighs.md) | -0.5% | +0.7% |

## Sources

- reuters.com: https://www.reuters.com/article/us-global-markets-idUSKCN1TL02X/
- thenationalnews.com: https://www.thenationalnews.com/business/markets/euro-reaches-3-month-high-as-dollar-sags-on-fed-easing-prospects-1.878277

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