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EUR/USD fell toward its yearly low ahead of an expected 50 basis point Fed rate hike. US Treasury yields climbed to a fresh yearly high, and the euro had lost about 3% since the start of the month.
A rising US yield advantage supports the dollar and pressures the euro, which can raise the local-currency cost of dollar-priced feed imports for European buyers.
ig.comDavid SongJun 14, 2022After 533 past bearish macro events, Euro (USD per EUR) moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Ahead of the expected 50bp Fed hike and with US Treasury yields at yearly highs, EUR/USD fell toward its yearly low, reflecting dollar-favoring rate dynamics.
