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The euro slumped to its lowest level of the year at $1.0631 after ECB President Lagarde said the bank was not dependent on the Fed and could cut rates first. The euro was down nearly 3% from the start of the week and on course for its biggest weekly drop in 19 months.
A stronger-than-expected US inflation report had earlier supported the dollar.
The ECB's willingness to diverge from the Fed is strengthening the dollar and weakening the euro. A firmer dollar generally weighs on dollar-priced commodities, including feed ingredients.
politico.euCarlo MartuscelliApr 12, 2024After 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.
Lagarde's signal that the ECB could cut before the Fed drove a sharp euro slide, a major component of dollar strength.
