# EUR/USD set to end the week on a sour note, drops sharply back below 1.2100 - Forex Crunch

> EUR/USD dropped back below 1.2100 on Friday, reversing a rally to seven-week highs near 1.2240. Month-end U.S. dollar buying was the main driver, and risk-sensitive AUD, NZD and CAD fell 1.9%, 1.6% and 0.9% against the dollar.

- Date: 2021-02-26 · published 2021-02-26T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/9591-eur-usd-set-to-end-the-week-on-a-sour-note-drops-sharply-back-below-1-2100
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Month-end dollar demand and dovish ECB signals strengthen the dollar and weigh on commodity-linked currencies. This can make dollar-priced feed imports relatively more expensive for some buyers.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2021-02-26 | 1 | -1.1% | -3.6 | Directly describes EUR/USD reversing from seven-week highs and dropping below 1.2100 on Feb 26, driven by month-end dollar buying and risk-off selling of risk currencies. |
| DXY | 2021-02-26 | 1 | +0.8% | 3.4 | Month-end dollar buying and sharp falls in AUD, NZD and CAD drove broad dollar gains on Feb 26. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-03-04 | [EUR/USD drops under 1.2000 as Powell send US bond yields flying - Forex Crunch](https://feedsoft.ai/events/11416-eur-usd-drops-under-1-2000-as-powell-send-us-bond-yields-flying-forex-crunch.md) | +0.7% | +0.9% |
| DXY | 2018-08-28 | [USD/MXN reverses sharply and rises back above 19.00 - Forex Crunch](https://feedsoft.ai/events/63759-usd-mxn-reverses-sharply-and-rises-back-above-19-00-forex-crunch.md) | +1.4% | +0.4% |
| DXY | 2019-12-04 | [USD: Risk Of A USD Spike Into Year-End On A Sharp Rise In Net USD Demand - Citi - Forex Crunch](https://feedsoft.ai/events/55757-usd-risk-of-a-usd-spike-into-year-end-on-a-sharp-rise-in-net-usd-demand-citi.md) | -0.5% | -1.6% |
| DXY | 2018-08-10 | [It took Turkey to send EUR/USD to new 2018 lows - Forex Crunch](https://feedsoft.ai/events/11067-it-took-turkey-to-send-eur-usd-to-new-2018-lows-forex-crunch.md) | +1.1% | +1.1% |
| DXY | 2020-03-30 | [USD/CAD climbs to daily highs above 1.4150 as WTI extends slide below $20 - Forex Crunch](https://feedsoft.ai/events/54357-usd-cad-climbs-to-daily-highs-above-1-4150-as-wti-extends-slide-below-20-forex.md) | +1.6% | +1.4% |
| EURUSD | 2021-03-04 | [EUR/USD drops under 1.2000 as Powell send US bond yields flying - Forex Crunch](https://feedsoft.ai/events/11416-eur-usd-drops-under-1-2000-as-powell-send-us-bond-yields-flying-forex-crunch.md) | -1.4% | -2.7% |
| EURUSD | 2018-08-10 | [It took Turkey to send EUR/USD to new 2018 lows - Forex Crunch](https://feedsoft.ai/events/11067-it-took-turkey-to-send-eur-usd-to-new-2018-lows-forex-crunch.md) | -1.5% | +0.1% |
| EURUSD | 2016-11-16 | [EUR/USD: Justifiably Weaker On 2 Factors - Barclays - Forex Crunch](https://feedsoft.ai/events/9130-eur-usd-justifiably-weaker-on-2-factors-barclays-forex-crunch.md) | -1.0% | -0.7% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2021/02/26/eur-usd-set-to-end-the-week-on-a-sour-note-drops-sharply-back-below-1-2100/

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