It appears the Euro (EUR) has continued its downward trajectory against the US Dollar (USD) recently. As we observe matters, EUR/USD has slipped to a three-month nadir, largely due to the Federal Reserve’s (Fed) assertive tone following a rather anticipated 25-basis-point rate cut earlier this week.
Currently, one can witness EUR/USD trading around 1.1523. This marks a decline extending over three successive days, heralding what seems to be the first monthly descent in a span of three months.
Interestingly, the US Dollar Index (DXY) is maintaining its stance, grazing close to a three-month pinnacle near the 99.80 mark. This index, which tracks the Dollar against a sextet of major currencies, is poised for a second consecutive monthly ascent. This uptick thrives on dwindling expectations of another rate slash within this year.
After the central bank decisions of this week settled, a stark policy divergence between the Fed and the European Central Bank (ECB) became evident. The Fed, opting for a “hawkish cut” on Wednesday, trimmed the federal funds rate to a bracket of 3.75%-4.00% with a 10-2 vote.
This was in harmony with market anticipations and was coupled with cautious guidance from Chair Jerome Powell. He calmed expectations of a December rate reduction, which many investors had deemed almost certain. The ECB, contrastingly, left its interest rates unchanged for the third consecutive gathering. They reasoned that inflation remains perilously near the central bank’s 2% medium-term objective, with the Eurozone economy still expanding despite global adversities, buoyed by a robust labor market.
In a statement, the ECB underscored its approach reliant on data, wary of pre-committing to any precise rate path, and stated they would finetune policies in accordance with inflowing data and evolving inflation trends.
Earlier today, remarks from Fed officials further reinforced the bank’s cautious approach. Raphael Bostic, Atlanta Fed President, mentioned that the Fed’s mandates are somewhat “in tension.” He supported the recent rate cut, suggesting that the policy environment remains restrictive.
Meanwhile, Cleveland Fed President Beth M. Hammack expressed her preference for holding rates steady, emphasizing that the central bank isn’t stuck on a predetermined path. Bostic echoed this sentiment and welcomed Chair Powell’s assertion that a December rate cut is “anything but certain.”
US Dollar Price Today
Below is a tabulated summary of the US Dollar’s performance against select major currencies today. It seems the Dollar exhibited the most strength against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | – | 0.36% | 0.14% | -0.03% | 0.23% | 0.22% | 0.37% | 0.32% |
| EUR | -0.36% | – | -0.23% | -0.39% | -0.13% | -0.14% | 0.00% | -0.04% |
| GBP | -0.14% | 0.23% | – | -0.16% | 0.10% | 0.10% | 0.24% | 0.18% |
| JPY | 0.03% | 0.39% | 0.16% | – | 0.25% | 0.25% | 0.39% | 0.34% |
| CAD | -0.23% | 0.13% | -0.10% | -0.25% | – | -0.02% | 0.14% | 0.08% |
| AUD | -0.22% | 0.14% | -0.10% | -0.25% | 0.02% | – | 0.14% | 0.10% |
| NZD | -0.37% | -0.01% | -0.24% | -0.39% | -0.14% | -0.14% | – | -0.06% |
| CHF | -0.32% | 0.04% | -0.18% | -0.34% | -0.08% | -0.10% | 0.06% | – |
This heat map elucidates the percentage changes of major currencies relative to each other. The base currency is selected from the left column; the quote currency, from the top row.
For example, if you choose the US Dollar from the left column and traverse the horizontal line to reach the Japanese Yen, the percentage reveals the change for USD (base)/JPY (quote).
