# ECB-Fed Rates Split Ignites Talk of Euro Sliding to Dollar Parity - Bloomberg

> Bank of America, LBBW and other institutions are modelling tail risks in which the euro falls to dollar parity if ECB and Fed rate cuts diverge. Strategists see euro weakness ahead if these rate bets play out. The article is a preview of possible scenarios rather than a realised move.

- Date: 2024-04-09 · published 2024-04-09T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/9973-ecb-fed-rates-split-ignites-talk-of-euro-sliding-to-dollar-parity-bloomberg
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of a larger rate gap would support the dollar and pressure the euro. Because the discussion is about scenarios, the price impact on feed commodities is limited for now.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2024-04-10 | 1 | -1.1% | -3.5 | Published 2024-04-09, it shows strategists building bearish euro views on ECB-Fed rate divergence just before the drop, a sentiment channel that plausibly contributed to the 1.10% fall. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-06-14 | [EUR/USD Euro Set to Hit Parity With Dollar in a Month, Wells Fargo Says - Bloomberg](https://feedsoft.ai/events/9636-eur-usd-euro-set-to-hit-parity-with-dollar-in-a-month-wells-fargo-says-bloomberg.md) | +1.1% | -3.4% |
| EURUSD | 2016-12-11 | [ECB Delivering a Dovish Taper Reinforces Bets on Euro Parity - Bloomberg](https://feedsoft.ai/events/5971-ecb-delivering-a-dovish-taper-reinforces-bets-on-euro-parity-bloomberg.md) | -0.8% | +0.3% |
| EURUSD | 2024-11-06 | [Euro (EUR/USD) Parity Back in Play as Trump Win Spurs Rates Divergence - Bloomberg](https://feedsoft.ai/events/5807-euro-eur-usd-parity-back-in-play-as-trump-win-spurs-rates-divergence-bloomberg.md) | -3.2% | -3.2% |
| EURUSD | 2024-03-28 | [Currency Markets: A Decline in the Euro to Parity With the Dollar Beckons - Bloomberg](https://feedsoft.ai/events/31420-currency-markets-a-decline-in-the-euro-to-parity-with-the-dollar-beckons.md) | +0.1% | -1.2% |
| 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 | 2016-12-11 | [ECB Delivering a Dovish Taper Reinforces Bets on Euro Parity - Bloomberg](https://feedsoft.ai/events/5971-ecb-delivering-a-dovish-taper-reinforces-bets-on-euro-parity-bloomberg.md) | +0.9% | +1.1% |
| DXY | 2024-11-06 | [Euro (EUR/USD) Parity Back in Play as Trump Win Spurs Rates Divergence - Bloomberg](https://feedsoft.ai/events/5807-euro-eur-usd-parity-back-in-play-as-trump-win-spurs-rates-divergence-bloomberg.md) | +1.9% | +1.5% |
| DXY | 2024-03-28 | [Currency Markets: A Decline in the Euro to Parity With the Dollar Beckons - Bloomberg](https://feedsoft.ai/events/31420-currency-markets-a-decline-in-the-euro-to-parity-with-the-dollar-beckons.md) | +0.0% | +1.6% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2024-04-09/ecb-fed-split-ignites-talk-of-euro-sliding-to-dollar-parity

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