# Dollar plunges as U.S. inflation data spurs exodus from crowded trade

> The U.S. dollar fell sharply after softer-than-expected U.S. core consumer price data, with the yen up as much as 3.3% in a day, its biggest one-day move since 2016. The Bloomberg-style dollar basket dropped about 2.2%, on pace for its worst day in nearly seven years. Investors unwound long dollar positions in a crowded trade.

- Date: 2022-11-10 · published 2022-11-10T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/7559-dollar-plunges-as-u-s-inflation-data-spurs-exodus-from-crowded-trade
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker dollar makes U.S. dollar-priced grains and oilseeds cheaper for foreign buyers, which tends to support export demand and futures prices. The move also shifts money toward risk assets.

## Read by commodity

- DXY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2022-11-14 | 5 | -2.9% | -4.2 | Softer-than-expected US core CPI on Nov 10 triggered the dollar's worst one-day drop since 2009 as crowded long positions were unwound, the main driver of the 5-day decline. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-11-14 | [Canadian dollar rallies as investors cheer U.S. inflation data](https://feedsoft.ai/events/33408-canadian-dollar-rallies-as-investors-cheer-u-s-inflation-data.md) | -1.8% | -1.4% |
| DXY | 2022-09-12 | [Latam currencies rally as dollar weakens ahead of U.S. inflation data](https://feedsoft.ai/events/39788-latam-currencies-rally-as-dollar-weakens-ahead-of-u-s-inflation-data.md) | +0.9% | +2.8% |
| DXY | 2022-12-13 | [U.S. dollar tumbles across the board as inflation rise eases](https://feedsoft.ai/events/38150-u-s-dollar-tumbles-across-the-board-as-inflation-rise-eases.md) | -0.2% | -2.1% |
| DXY | 2026-07-30 | [Gold rises on weaker U.S. dollar, soft inflation data](https://feedsoft.ai/events/18260-gold-rises-on-weaker-u-s-dollar-soft-inflation-data.md) | -1.2% | -1.9% |
| DXY | 2024-08-02 | [US Dollar plunges on soft NFPs from July](https://feedsoft.ai/events/9288-us-dollar-plunges-on-soft-nfps-from-july.md) | -0.3% | -1.3% |

## Sources

- cnbc.com: https://www.cnbc.com/2022/11/10/dollar-wobbles-ahead-of-inflation-data-cryptos-crumble.html

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