# MUFG: Euro-Dollar Trend Heading Towards 1.05

> MUFG says EUR/USD is heading towards 1.05 after stronger-than-expected US inflation, driven by rents, ruled out a June Fed cut. The euro dipped to just above 1.0720, close to eight-week lows. MUFG expects the ECB to be cautious, though clearer guidance on a June cut would still weaken the euro.

- Date: 2024-04-12 · published 2024-04-12T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/9976-mufg-euro-dollar-trend-heading-towards-1-05
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Markets are pricing out early Fed cuts, which supports the dollar and pressures the euro and dollar-priced commodities. The forecast is a currency call with little direct effect on feed prices.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2020-04-29 | [Euro seen falling to 1.05 to the US dollar by year-end: BofA](https://feedsoft.ai/events/53851-euro-seen-falling-to-1-05-to-the-us-dollar-by-year-end-bofa.md) | +0.1% | +1.2% |
| EURUSD | 2017-04-28 | [Euro falls against U.S. dollar on dovish ECB tone - Trending News](https://feedsoft.ai/events/71695-euro-falls-against-u-s-dollar-on-dovish-ecb-tone-trending-news.md) | +0.9% | +3.3% |
| EURUSD | 2021-07-22 | [Euro slips; U.S. dollar inches higher in volatile trading](https://feedsoft.ai/events/46292-euro-slips-u-s-dollar-inches-higher-in-volatile-trading.md) | +0.1% | -0.8% |
| EURUSD | 2016-06-24 | [Euro sinks to three-month low vs. dollar](https://feedsoft.ai/events/6958-euro-sinks-to-three-month-low-vs-dollar.md) | -3.0% | -3.6% |
| EURUSD | 2018-05-29 | [Euro hits 10-month nadir versus dollare](https://feedsoft.ai/events/65218-euro-hits-10-month-nadir-versus-dollare.md) | +0.3% | +0.2% |
| DXY | 2020-04-29 | [Euro seen falling to 1.05 to the US dollar by year-end: BofA](https://feedsoft.ai/events/53851-euro-seen-falling-to-1-05-to-the-us-dollar-by-year-end-bofa.md) | -0.5% | -1.5% |
| DXY | 2017-04-28 | [Euro falls against U.S. dollar on dovish ECB tone - Trending News](https://feedsoft.ai/events/71695-euro-falls-against-u-s-dollar-on-dovish-ecb-tone-trending-news.md) | -0.1% | -1.4% |
| DXY | 2021-07-22 | [Euro slips; U.S. dollar inches higher in volatile trading](https://feedsoft.ai/events/46292-euro-slips-u-s-dollar-inches-higher-in-volatile-trading.md) | -0.2% | +0.3% |

## Sources

- exchangerates.org.uk: https://www.exchangerates.org.uk/news/40515/2024-04-12-mufg-euro-dollar-trend-heading-towards-105.html

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