# FX Daily: From Fed dependence to Fed divergence | articles | ING THINK

> ING says the dollar is consolidating after the ECB and Bank of Canada signalled a desire to diverge from the Fed. A hot US CPI print triggered a substantial dollar rally. Markets may begin to decouple Fed rate expectations from those of other central banks.

- Date: 2024-04-12 · published 2024-04-12T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/9972-fx-daily-from-fed-dependence-to-fed-divergence-articles-ing-think
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

If other central banks keep cutting while the Fed holds, the dollar stays firm, which weighs on EUR and CAD and on dollar-priced commodities. The effect on feed prices is indirect.

## Read by commodity

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

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2024-04-16 | 5 | +2.0% | 2.9 | Hot CPI triggered a dollar rally while the ECB and BoC signaled divergence from the Fed. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-06-17 | [FX Daily: The Fed disrupting the calm \| articles \| ING THINK](https://feedsoft.ai/events/6129-fx-daily-the-fed-disrupting-the-calm-articles-ing-think.md) | +1.1% | +1.7% |
| DXY | 2024-02-05 | [FX Daily: Flip Flop \| articles \| ING THINK](https://feedsoft.ai/events/31892-fx-daily-flip-flop-articles-ing-think.md) | +0.1% | -0.0% |
| DXY | 2020-03-13 | [FX daily: Dislocation, dislocation, dislocation \| articles \| ING THINK](https://feedsoft.ai/events/6276-fx-daily-dislocation-dislocation-dislocation-articles-ing-think.md) | +3.8% | +1.6% |
| DXY | 2024-02-06 | [FX Daily: On the path to KRW deliverability \| articles \| ING THINK](https://feedsoft.ai/events/31904-fx-daily-on-the-path-to-krw-deliverability-articles-ing-think.md) | -0.3% | -0.4% |
| DXY | 2024-04-17 | [FX Daily: The big unwinding \| articles \| ING THINK](https://feedsoft.ai/events/30940-fx-daily-the-big-unwinding-articles-ing-think.md) | -0.3% | -1.0% |
| EURUSD | 2021-06-17 | [FX Daily: The Fed disrupting the calm \| articles \| ING THINK](https://feedsoft.ai/events/6129-fx-daily-the-fed-disrupting-the-calm-articles-ing-think.md) | -1.4% | -2.6% |
| EURUSD | 2023-10-25 | [FX Daily: Hawks versus data, part one \| articles \| ING THINK](https://feedsoft.ai/events/33851-fx-daily-hawks-versus-data-part-one-articles-ing-think.md) | -0.3% | +2.6% |
| EURUSD | 2024-11-21 | [FX Daily: Soft euro story dominates \| articles \| ING THINK](https://feedsoft.ai/events/27713-fx-daily-soft-euro-story-dominates-articles-ing-think.md) | +0.5% | -1.6% |

## Sources

- think.ing.com: https://think.ing.com/articles/fx-daily-from-fed-dependence-to-fed-divergence/

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