The US Dollar (USD) displayed minimal movement this week, as markets evaluated President Trump’s nomination of Kevin Warsh as the next Fed Chair and the resolution of the partial US government shutdown, which delayed employment and inflation data to the following week. Fortunately, the shutdown concluded on Wednesday, when President Trump signed a funding bill.
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US Dollar Price Today
The table beneath showcases the percentage change of the US Dollar (USD) against major currencies for today. The US Dollar found its strongest position against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | – | -0.33% | -0.55% | 0.05% | -0.27% | -1.03% | -0.92% | -0.36% |
| EUR | 0.33% | – | 0.23% | 0.39% | 0.06% | -0.70% | -0.59% | -0.04% |
| GBP | 0.55% | 0.23% | – | 0.62% | 0.29% | -0.48% | -0.37% | 0.19% |
| JPY | -0.05% | -0.39% | -0.62% | – | -0.31% | -1.08% | -0.97% | -0.41% |
| CAD | 0.27% | -0.06% | -0.29% | 0.31% | – | -0.77% | -0.66% | -0.10% |
| AUD | 1.03% | 0.70% | 0.48% | 1.08% | 0.77% | – | 0.11% | 0.67% |
| NZD | 0.92% | 0.59% | 0.37% | 0.97% | 0.66% | -0.11% | – | 0.56% |
| CHF | 0.36% | 0.04% | -0.19% | 0.41% | 0.10% | -0.67% | -0.56% | – |
The heat map shows percentage changes of major currencies against each other. The base currency is chosen from the left column, while the quote currency is selected from the top row. For instance, if you select the US Dollar from the left column and move horizontally towards the Japanese Yen, the displayed percentage change in the box represents USD (base)/JPY (quote).
The US Dollar Index (DXY) hovers around the 97.60 level after reaching a two-week high earlier on Friday. In the upcoming week, we anticipate the release of the US ADP Employment Change four-week average on Tuesday, Nonfarm Payrolls on Wednesday, and Initial Jobless Claims on Thursday.
Moving on, the EUR/USD pair is trading near 1.1820, having risen over 0.30% today after the European Central Bank (ECB) revealed its monetary policy decision earlier in the week. Notably, Sentix Investor Confidence for February is due on Monday, while the Eurozone Employment Change is set for release on Friday.
Meanwhile, GBP/USD is hovering around 1.3610, recovering part of its losses after a dovish hold on interest rate decisions by the Bank of England (BoE). Anticipated are the January BRC Like-For-Like Retail Sales on Monday and Industrial and Manufacturing Production data on Thursday.
The USD/JPY pair is positioned near the 157.10 mark, advancing towards a fortnightly high. On Sunday, Japanese General Elections will take place alongside December Labor Cash Earnings and Current Account NSA releases.
Additionally, USD/CAD stands near the 1.3650 territory, trimming half of its weekly gains. It appears Canada has no significant data releases lined up for next week.
Presently, gold is trading around $4,960. Although the shutdown has been resolved, geopolitical tensions leave gold struggling to attract buyers.
Anticipating economic perspectives: Voices on the horizon
Sunday 8:
- No significant events.
Monday 9:
- ECB’s Lane
- ECB’s Nagel
- ECB President Lagarde
Tuesday 10:
- Fed’s Hammack
- Fed’s Logan
Wednesday 11:
- ECB’s Cipollone
- Fed’s Bowman
- ECB’s Schnabel
- Fed’s Hammack
Thursday 12:
- ECB’s Cipollone
- ECB’s Lane
- ECB’s Nagel
Friday 13:
- Fed’s Logan
- Fed’s Miran
- ECB’s De Guindos
- BoE’s Pill
Saturday 14:
- ECB’s President Lagarde
Central banks’ meetings and upcoming data releases to shape monetary policies
Tuesday 10:
- US December Retail Sales
Wednesday 11:
- China January Consumer Price Index (CPI)
- US January Nonfarm Payrolls
Thursday 12:
- UK flash Gross Domestic Product (GDP) (Q4)
Friday 13:
- RBNZ Inflation Expectations (Q1)
- Swiss January CPI
- Eurozone flash GDP (Q4)
- US January CPI
Gold FAQs
Gold has been central in human history as a store of value and medium of exchange. Beyond its glitter and jewellery use, the precious metal is lauded as a safe-haven asset, advisable during tumultuous times. Interestingly, it serves as a hedge against inflation and depreciating currencies since it’s not tied to any particular issuer or government.
Central banks worldwide, seeking currency support during turbulent times, often diversify reserves by purchasing gold to fortify economic and currency strength. Indeed, data from the World Gold Council highlights that central banks added 1,136 tonnes of gold in 2022, marking the largest yearly purchase since records began, with emerging economies like China, India, and Turkey significantly bolstering their reserves.
Gold shares an inverse correlation with the US Dollar and US Treasuries—both major reserve and safe-haven assets. When the Dollar depreciates, gold tends to rise, providing a hedge for investors and central banks during uncertain times. Additionally, the precious metal inversely correlates with risk assets—an equity market rally might weaken gold prices, whilst riskier market sell-offs can bolster them.
Various factors can swing gold prices. Geopolitical instability or recession fears often escalate gold’s value due to its safe-haven nature. Lower interest rates typically boost gold, given its yield-less nature, while higher rates might suppress it. Yet, the US Dollar’s behaviour ultimately steers gold’s price, as it’s priced in dollars (XAU/USD). A strong Dollar often contains gold’s price, whereas a weaker Dollar may elevate it.
