# Euro plunges, eyes parity with dollar after Lagarde’s go-it-alone pledge – POLITICO

> 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.

- Date: 2024-04-12 · published 2024-04-12T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/9971-euro-plunges-eyes-parity-with-dollar-after-lagarde-s-go-it-alone-pledge-politico
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

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.

## 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 | Lagarde's signal that the ECB could cut before the Fed drove a sharp euro slide, a major component of dollar strength. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2016-12-22 | [Euro-Dollar Parity: It’s All About the Greenback](https://feedsoft.ai/events/73662-euro-dollar-parity-it-s-all-about-the-greenback.md) | +0.6% | +3.1% |
| EURUSD | 2022-08-23 | [Euro falls below parity with the dollar. What's the impact? \| AP News](https://feedsoft.ai/events/40249-euro-falls-below-parity-with-the-dollar-what-s-the-impact-ap-news.md) | +0.6% | +0.6% |
| EURUSD | 2022-07-12 | [Euro bounces from brink of parity with US dollar](https://feedsoft.ai/events/40714-euro-bounces-from-brink-of-parity-with-us-dollar.md) | +0.7% | +1.2% |
| EURUSD | 2024-09-23 | [Euro slumps, dollar index edges higher after PMI data](https://feedsoft.ai/events/28526-euro-slumps-dollar-index-edges-higher-after-pmi-data.md) | 0.0% | -3.0% |
| EURUSD | 2022-07-13 | [ECB is 'attentive' to exchange rate as euro hits parity with dollar \| Reuters](https://feedsoft.ai/events/40709-ecb-is-attentive-to-exchange-rate-as-euro-hits-parity-with-dollar-reuters.md) | +1.7% | +1.6% |
| DXY | 2016-12-22 | [Euro-Dollar Parity: It’s All About the Greenback](https://feedsoft.ai/events/73662-euro-dollar-parity-it-s-all-about-the-greenback.md) | +0.1% | -1.3% |
| DXY | 2022-08-23 | [Euro falls below parity with the dollar. What's the impact? \| AP News](https://feedsoft.ai/events/40249-euro-falls-below-parity-with-the-dollar-what-s-the-impact-ap-news.md) | -0.1% | +1.2% |
| DXY | 2022-07-12 | [Euro bounces from brink of parity with US dollar](https://feedsoft.ai/events/40714-euro-bounces-from-brink-of-parity-with-us-dollar.md) | -0.4% | -1.2% |

## Sources

- politico.eu: https://www.politico.eu/article/euro-slumped-lowest-level-ebc-president-christine-lagarde-signaling-bank-willing-cut-interest-rates-before-us/

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