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The euro dropped to a five-month low against the dollar after the ECB signalled it could cut rates soon, while a hot US inflation report led the Fed to hold off. The yen hit a 34-year low against the dollar.
The euro was down 0.8% and set for a 1.5% weekly fall.
Diverging central bank policy is driving a stronger dollar, which pressures non-US currencies and dollar-denominated commodity prices. The move is a currency story with limited direct effect on feed commodity prices.
cnbc.comReutersApr 12, 2024After 533 past bearish macro events, EURUSD 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, DXY moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Not enough comparable past events yet for a historical read.
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.
ECB-Fed divergence plus hot US inflation sent the euro, the largest weight in the broad index, to a five-month low and lifted the dollar.
