# Euro hits two-week high on European interest rate prospects

> The euro rose to a two-week high against the dollar as traders priced in a likely 75 basis point ECB rate hike in October after euro zone inflation hit a record 10%. The dollar weakened as US Treasury yields fell after weak US manufacturing data.

- Date: 2022-10-04 · published 2022-10-04T12:00:00.000Z
- Category: macro · region Europe · magnitude low
- Page: https://feedsoft.ai/events/9329-euro-hits-two-week-high-on-european-interest-rate-prospects
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expected ECB tightening narrows the rate gap with the US and weakens the dollar, which tends to support dollar-priced commodities such as grains and oilseeds. Feed buyers may see slightly firmer dollar-denominated import costs in Europe.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2022-10-04 | 5 | +3.8% | 3.7 | Expectations of a 75bp ECB hike after record 10% inflation, plus lower US yields on weak manufacturing data, lifted the euro to a two-week high. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2023-01-26 | [Euro hits fresh nine-month highs on ECB prospects](https://feedsoft.ai/events/38000-euro-hits-fresh-nine-month-highs-on-ecb-prospects.md) | +0.1% | -2.9% |
| EURUSD | 2026-07-30 | [Euro climbs to six-week high as suspected Japanese intervention pressures Greenback](https://feedsoft.ai/events/18559-euro-climbs-to-six-week-high-as-suspected-japanese-intervention-pressures.md) | +1.4% | +2.3% |
| EURUSD | 2022-05-23 | [Euro scales three-week high on Chinese recovery hopes](https://feedsoft.ai/events/12693-euro-scales-three-week-high-on-chinese-recovery-hopes.md) | +1.4% | -0.1% |
| EURUSD | 2019-05-19 | [Euro Climbs Higher as ECB pushes back Interest Rate deadline; - BBC Money](https://feedsoft.ai/events/59291-euro-climbs-higher-as-ecb-pushes-back-interest-rate-deadline-bbc-money.md) | +0.3% | +0.6% |
| EURUSD | 2021-07-30 | [EUR/USD Forecast: Euro US Dollar Exchange Rate Climbs To Three-Week High On Disappointing US GDP](https://feedsoft.ai/events/46297-eur-usd-forecast-euro-us-dollar-exchange-rate-climbs-to-three-week-high-on.md) | -0.4% | -1.1% |
| DXY | 2023-01-26 | [Euro hits fresh nine-month highs on ECB prospects](https://feedsoft.ai/events/38000-euro-hits-fresh-nine-month-highs-on-ecb-prospects.md) | -0.3% | +1.8% |
| DXY | 2024-08-27 | [Pound hits two-year high on dollar, gains on euro \| Reuters](https://feedsoft.ai/events/29066-pound-hits-two-year-high-on-dollar-gains-on-euro-reuters.md) | +0.9% | -0.5% |
| DXY | 2026-07-30 | [Euro climbs to six-week high as suspected Japanese intervention pressures Greenback](https://feedsoft.ai/events/18559-euro-climbs-to-six-week-high-as-suspected-japanese-intervention-pressures.md) | -1.2% | -1.9% |

## Sources

- economies.com: https://www.economies.com/forex/news/euro-hits-two-week-high-on-european-interest-rate-prospects-41675

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