# Euro (EUR USD) Falls to Five-Month Low as ECB-Fed Divergence Looms Large - Bloomberg

> The euro fell nearly 1% to $1.0631 on Friday, breaking the year's previous low set in February and reaching its weakest level in five months. It was on track for a 2% weekly decline, the worst since late 2022. The ECB was seen moving to cut rates before the Federal Reserve.

- Date: 2024-04-12 · published 2024-04-12T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/9969-euro-eur-usd-falls-to-five-month-low-as-ecb-fed-divergence-looms-large-bloomberg
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A widening rate gap favouring the dollar strengthens USD and weakens the euro, which tends to lift the dollar index. For feed buyers the effect on grain and meal prices is indirect and modest.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2024-04-16 | 5 | +2.0% | 2.9 | Euro's worst weekly decline since 2022 on ECB-Fed policy divergence mechanically lifted the dollar. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-06-14 | [EUR/USD Euro Set to Hit Parity With Dollar in a Month, Wells Fargo Says - Bloomberg](https://feedsoft.ai/events/9636-eur-usd-euro-set-to-hit-parity-with-dollar-in-a-month-wells-fargo-says-bloomberg.md) | +1.1% | -3.4% |
| EURUSD | 2024-04-12 | [Dollar jumps on central bank divergence, euro hits five-month low](https://feedsoft.ai/events/9970-dollar-jumps-on-central-bank-divergence-euro-hits-five-month-low.md) | -0.6% | +0.5% |
| EURUSD | 2024-11-06 | [Euro (EUR/USD) Parity Back in Play as Trump Win Spurs Rates Divergence - Bloomberg](https://feedsoft.ai/events/5807-euro-eur-usd-parity-back-in-play-as-trump-win-spurs-rates-divergence-bloomberg.md) | -3.2% | -3.2% |
| EURUSD | 2026-10-02 | [Euro sinks to 17-month low – Lagarde calls for a 'measured' ECB approach](https://feedsoft.ai/events/9650-euro-sinks-to-17-month-low-lagarde-calls-for-a-measured-ecb-approach.md) | -0.4% | -0.6% |
| EURUSD | 2020-10-29 | [Euro falls to four-week low as ECB flags easing in December \| Financial Post](https://feedsoft.ai/events/50839-euro-falls-to-four-week-low-as-ecb-flags-easing-in-december-financial-post.md) | -0.2% | +1.7% |
| DXY | 2024-04-12 | [Dollar jumps on central bank divergence, euro hits five-month low](https://feedsoft.ai/events/9970-dollar-jumps-on-central-bank-divergence-euro-hits-five-month-low.md) | +1.1% | +0.5% |
| DXY | 2024-11-06 | [Euro (EUR/USD) Parity Back in Play as Trump Win Spurs Rates Divergence - Bloomberg](https://feedsoft.ai/events/5807-euro-eur-usd-parity-back-in-play-as-trump-win-spurs-rates-divergence-bloomberg.md) | +1.9% | +1.5% |
| DXY | 2025-02-11 | [VND/USD: Vietnam Dong Falls to Record Low Against US Dollar - Bloomberg](https://feedsoft.ai/events/26383-vnd-usd-vietnam-dong-falls-to-record-low-against-us-dollar-bloomberg.md) | -1.0% | -2.0% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2024-04-12/euro-falls-to-five-month-low-as-ecb-fed-divergence-looms-large

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