# Dollar jumps on central bank divergence, euro hits five-month low

> 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.

- Date: 2024-04-12 · published 2024-04-12T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/9970-dollar-jumps-on-central-bank-divergence-euro-hits-five-month-low
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

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.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼
- USDJPY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2024-04-16 | 5 | +2.0% | 2.9 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2024-04-12 | [Euro (EUR USD) Falls to Five-Month Low as ECB-Fed Divergence Looms Large - Bloomberg](https://feedsoft.ai/events/9969-euro-eur-usd-falls-to-five-month-low-as-ecb-fed-divergence-looms-large-bloomberg.md) | -0.6% | +0.5% |
| EURUSD | 2017-11-07 | [Policy divergence bets drive dollar gains, pull euro lower](https://feedsoft.ai/events/68188-policy-divergence-bets-drive-dollar-gains-pull-euro-lower.md) | +1.4% | +1.6% |
| EURUSD | 2022-04-27 | [Dollar hits five-year high, growth concerns dent euro](https://feedsoft.ai/events/7377-dollar-hits-five-year-high-growth-concerns-dent-euro.md) | -1.2% | +0.8% |
| EURUSD | 2018-05-29 | [Euro hits 10-month nadir versus dollare](https://feedsoft.ai/events/65218-euro-hits-10-month-nadir-versus-dollare.md) | +0.3% | +0.2% |
| EURUSD | 2022-01-31 | [Dollar holds near 18-month high ahead of busy central bank week - CNBC TV18](https://feedsoft.ai/events/43323-dollar-holds-near-18-month-high-ahead-of-busy-central-bank-week-cnbc-tv18.md) | +2.6% | +0.6% |
| DXY | 2024-04-12 | [Euro (EUR USD) Falls to Five-Month Low as ECB-Fed Divergence Looms Large - Bloomberg](https://feedsoft.ai/events/9969-euro-eur-usd-falls-to-five-month-low-as-ecb-fed-divergence-looms-large-bloomberg.md) | +1.1% | +0.5% |
| DXY | 2017-11-07 | [Policy divergence bets drive dollar gains, pull euro lower](https://feedsoft.ai/events/68188-policy-divergence-bets-drive-dollar-gains-pull-euro-lower.md) | -0.2% | -0.8% |
| DXY | 2022-04-27 | [Dollar hits five-year high, growth concerns dent euro](https://feedsoft.ai/events/7377-dollar-hits-five-year-high-growth-concerns-dent-euro.md) | +0.6% | -0.3% |

## Sources

- cnbc.com: https://www.cnbc.com/2024/04/12/yen-crumbles-under-towering-dollar-and-us-treasury-yields.html

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