# US dollar sinks on Fed dovish pivot, setups on EUR/USD, USD/JPY, GBP/USD | IG AE

> The dollar index dropped nearly 0.9% on Wednesday after the Fed's projections implied 75 basis points of easing in 2024. Treasury yields fell sharply, and EUR/USD and GBP/USD rose.

- Date: 2023-12-14 · published 2023-12-14T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/8714-us-dollar-sinks-on-fed-dovish-pivot-setups-on-eur-usd-usd-jpy-gbp-usd-ig-ae
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Lower US yields and a weaker dollar reduce the cost of holding dollar commodities and can support feed grain and soymeal prices.

## Read by commodity

- DXY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2023-12-14 | 1 | -1.3% | -3.8 | The dollar index fell nearly 0.9% on the Fed's dovish pivot (75 bp of implied easing) as Treasury yields dropped, which is the core mechanism of the move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-11-30 | [US dollar falls on dovish remarks by Fed's Powell](https://feedsoft.ai/events/32901-us-dollar-falls-on-dovish-remarks-by-fed-s-powell.md) | +0.6% | -1.2% |
| DXY | 2021-07-29 | [Pound highest in over a month as dollar dips on dovish Fed \| Euronews](https://feedsoft.ai/events/46306-pound-highest-in-over-a-month-as-dollar-dips-on-dovish-fed-euronews.md) | -0.3% | +0.4% |
| DXY | 2019-06-20 | [Dovish Fed Hits The US Dollar \| ECONOMETER](https://feedsoft.ai/events/58783-dovish-fed-hits-the-us-dollar-econometer.md) | -1.1% | -0.8% |
| DXY | 2025-05-29 | [EUR/USD rebounds sharply as soft US jobs, GDP data sink US Dollar](https://feedsoft.ai/events/24905-eur-usd-rebounds-sharply-as-soft-us-jobs-gdp-data-sink-us-dollar.md) | -0.8% | -1.9% |
| DXY | 2025-11-25 | [EUR/USD Forecast: Advances as US data, dovish Fed signal rate cut](https://feedsoft.ai/events/22154-eur-usd-forecast-advances-as-us-data-dovish-fed-signal-rate-cut.md) | -0.6% | -1.8% |

## Sources

- ig.com: https://www.ig.com/ae/news-and-trade-ideas/market-update--us-dollar-sinks-on-fed-dovish-pivot--setups-on-eu-231214

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