# Dollar tumbles on dovish Fed, euro gains as ECB talks down rate cuts – ThePrint – ReutersFeed

> The dollar fell to a two-week low against the euro and a four-month low against the yen after the Fed indicated rate cuts were likely next year. The euro and pound were supported by the ECB and Bank of England holding rates higher for longer.

- Date: 2023-12-14 · published 2023-12-14T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/8298-dollar-tumbles-on-dovish-fed-euro-gains-as-ecb-talks-down-rate-cuts-theprint
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A broad dollar selloff on lower US rate expectations generally supports dollar-priced commodities, though the divergence in central bank messaging adds currency volatility for importers.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2023-12-14 | 1 | +1.9% | 3.9 | Dovish Fed signaling rate cuts pushed the dollar to a two-week low against the euro while the ECB held rates higher for longer, directly driving the 1-day euro gain ending Dec 14. |
| DXY | 2023-12-14 | 1 | -1.3% | -3.8 | Dollar fell to a two-week low versus the euro and a four-month low versus the yen after the Fed signaled 2024 cuts, while the ECB and BoE held a higher-for-longer stance, directly explaining the broad dollar drop. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-03-02 | [Yen, euro gain on dollar as Fed rate cut talks heat up \| Malay Mail](https://feedsoft.ai/events/6189-yen-euro-gain-on-dollar-as-fed-rate-cut-talks-heat-up-malay-mail.md) | -0.8% | +4.0% |
| DXY | 2026-05-29 | [Dollar Faces Bigger Hit Than Euro If Fed, ECB Resume Rate Cuts -- Market Talk](https://feedsoft.ai/events/19476-dollar-faces-bigger-hit-than-euro-if-fed-ecb-resume-rate-cuts-market-talk.md) | +0.3% | +1.6% |
| DXY | 2025-02-11 | [Dollar falls as tariff concerns ease, Fed's Powell stays patient on rate cuts \| Reuters](https://feedsoft.ai/events/25966-dollar-falls-as-tariff-concerns-ease-fed-s-powell-stays-patient-on-rate-cuts.md) | -1.0% | -2.0% |
| DXY | 2019-10-31 | [Euro rises as dollar weakens on questions about more Fed rate cuts](https://feedsoft.ai/events/56782-euro-rises-as-dollar-weakens-on-questions-about-more-fed-rate-cuts.md) | -0.1% | +0.8% |
| DXY | 2022-05-23 | [Euro climbs as ECB eyes rate hikes, dollar slides \| Reuters](https://feedsoft.ai/events/12687-euro-climbs-as-ecb-eyes-rate-hikes-dollar-slides-reuters.md) | -0.9% | +1.1% |
| EURUSD | 2026-05-29 | [Dollar Faces Bigger Hit Than Euro If Fed, ECB Resume Rate Cuts -- Market Talk](https://feedsoft.ai/events/19476-dollar-faces-bigger-hit-than-euro-if-fed-ecb-resume-rate-cuts-market-talk.md) | -0.2% | -2.1% |
| EURUSD | 2019-10-31 | [Euro rises as dollar weakens on questions about more Fed rate cuts](https://feedsoft.ai/events/56782-euro-rises-as-dollar-weakens-on-questions-about-more-fed-rate-cuts.md) | -0.4% | -0.9% |
| EURUSD | 2022-05-23 | [Euro climbs as ECB eyes rate hikes, dollar slides \| Reuters](https://feedsoft.ai/events/12687-euro-climbs-as-ecb-eyes-rate-hikes-dollar-slides-reuters.md) | +1.4% | -0.1% |

## Sources

- finance.yahoo.com: https://finance.yahoo.com/news/dollar-takes-dive-fed-signals-002501439.html
- theprint.in: https://theprint.in/economy/dollar-tumbles-on-dovish-fed-euro-gains-as-ecb-talks-down-rate-cuts/1886733/
- investing.com: https://www.investing.com/news/economy/dollar-takes-a-dive-after-fed-signals-rate-cuts-next-year-3256112

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