# EUR/USD rate approaches yearly low with Fed rate hike on tap | IG Bank Switzerland

> 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.

- Date: 2022-06-14 · published 2022-06-14T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/9638-eur-usd-rate-approaches-yearly-low-with-fed-rate-hike-on-tap-ig-bank-switzerland
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

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.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2022-06-15 | 5 | -3.3% | -3.6 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2017-11-02 | [Pound sterling (GBP) plunges against the dollar (USD) and euro (EUR) as Bank hikes interest rates](https://feedsoft.ai/events/68237-pound-sterling-gbp-plunges-against-the-dollar-usd-and-euro-eur-as-bank-hikes.md) | -0.2% | +2.5% |
| EURUSD | 2018-08-10 | [US Dollar to Yearly Highs as EUR/USD Breaks Down on Contagion Fears](https://feedsoft.ai/events/11066-us-dollar-to-yearly-highs-as-eur-usd-breaks-down-on-contagion-fears.md) | -1.5% | +0.1% |
| EURUSD | 2019-02-07 | [EUR/USD: Hits two-week low, downside exposed as markets push back ECB rate hike bets to end 2020 — Octa](https://feedsoft.ai/events/60825-eur-usd-hits-two-week-low-downside-exposed-as-markets-push-back-ecb-rate-hike.md) | -0.8% | -1.2% |
| EURUSD | 2021-06-17 | [Pound-to-Euro Rate Lifts to 1.17 after EUR/USD Sinks on Fed's 'Hawkish' Message](https://feedsoft.ai/events/6134-pound-to-euro-rate-lifts-to-1-17-after-eur-usd-sinks-on-fed-s-hawkish-message.md) | -1.4% | -2.6% |
| EURUSD | 2026-10-01 | [Euro slides to 17-month low, hit by rates and inflation mix](https://feedsoft.ai/events/9648-euro-slides-to-17-month-low-hit-by-rates-and-inflation-mix.md) | -1.4% | -1.6% |
| DXY | 2022-01-28 | [Sterling hits year low vs dollar on Fed rate hike fears and UK political risks](https://feedsoft.ai/events/43376-sterling-hits-year-low-vs-dollar-on-fed-rate-hike-fears-and-uk-political-risks.md) | -0.9% | -0.6% |
| DXY | 2016-12-14 | [Fed surprises with three rate hikes next year — and could need more](https://feedsoft.ai/events/6464-fed-surprises-with-three-rate-hikes-next-year-and-could-need-more.md) | +1.6% | +0.9% |
| DXY | 2022-09-20 | [Australian dollar steady ahead of Fed and BoJ \| IG Bank Switzerland](https://feedsoft.ai/events/39842-australian-dollar-steady-ahead-of-fed-and-boj-ig-bank-switzerland.md) | +2.8% | +2.3% |

## Sources

- ig.com: https://www.ig.com/en-ch/news-and-trade-ideas/eur-usd-rate-approaches-yearly-low-with-fed-rate-hike-on-tap-220614

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