# Euro sharpens decline to five-month lows on concerns about the interest rate gap

> The euro fell to a five-month low around $1.0675 on Friday, losing the $1.07 level for the first time since November 2023. The ECB kept rates at record highs but hinted at a June cut. The pair was heading for its worst weekly performance in a year.

- Date: 2024-04-12 · published 2024-04-12T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/9975-euro-sharpens-decline-to-five-month-lows-on-concerns-about-the-interest-rate-gap
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

The euro's decline reflects a growing interest rate gap with the US, which supports the dollar and pressures dollar-priced commodities. The price effect on feed markets is indirect.

## 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 | Euro fell below 1.07 on the interest rate gap, adding to dollar gains. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-06-13 | [Euro sharpens decline to four-week low](https://feedsoft.ai/events/9635-euro-sharpens-decline-to-four-week-low.md) | -0.5% | -4.3% |
| EURUSD | 2024-03-27 | [EUR/USD continues lower on diverging interest-rate outlook](https://feedsoft.ai/events/31419-eur-usd-continues-lower-on-diverging-interest-rate-outlook.md) | -0.6% | -1.2% |
| EURUSD | 2021-03-01 | [Euro to US Dollar Exchange Rate Dips on Concerns Over the EU’s Slow Covid-19 Vaccine Rollout \| Euro Exchange Rate News This is](https://feedsoft.ai/events/11423-euro-to-us-dollar-exchange-rate-dips-on-concerns-over-the-eu-s-slow-covid-19.md) | -1.5% | -2.4% |
| EURUSD | 2024-05-29 | [Big moves ahead: ECB’s interest rate cut and the future of EUR/USD](https://feedsoft.ai/events/30469-big-moves-ahead-ecb-s-interest-rate-cut-and-the-future-of-eur-usd.md) | -0.0% | -1.8% |
| EURUSD | 2024-06-11 | [Euro drops to a one-month low; US dollar firms ahead of key inflation test  - The Business Times](https://feedsoft.ai/events/29986-euro-drops-to-a-one-month-low-us-dollar-firms-ahead-of-key-inflation-test-the.md) | -0.3% | +0.7% |
| DXY | 2022-06-13 | [Euro sharpens decline to four-week low](https://feedsoft.ai/events/9635-euro-sharpens-decline-to-four-week-low.md) | +1.0% | +2.9% |
| DXY | 2024-03-27 | [EUR/USD continues lower on diverging interest-rate outlook](https://feedsoft.ai/events/31419-eur-usd-continues-lower-on-diverging-interest-rate-outlook.md) | +0.2% | +1.4% |
| DXY | 2021-03-01 | [Euro to US Dollar Exchange Rate Dips on Concerns Over the EU’s Slow Covid-19 Vaccine Rollout \| Euro Exchange Rate News This is](https://feedsoft.ai/events/11423-euro-to-us-dollar-exchange-rate-dips-on-concerns-over-the-eu-s-slow-covid-19.md) | +0.8% | +0.8% |

## Sources

- economies.com: https://www.economies.com/forex/eur-usd-news/euro-sharpens-decline-to-five-month-lows-on-concerns-about-the-interest-rate-gap-44233

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