Here’s a quick overview for Thursday, October 9th.
Traders will be paying close attention to statements from central bank representatives, particularly Federal Reserve Chair Jerome Powell, as the release of significant economic data from the U.S. will be delayed due to the ongoing government shutdown.
USD price this week
The following table highlights the percentage changes of the U.S. dollar (USD) against major currencies this week. Notably, the dollar performed best against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.92% | 0.67% | 2.39% | 0.01% | 0.09% | 0.82% | 0.83% | |
| EUR | -0.92% | -0.35% | 1.35% | -0.93% | -0.87% | -0.14% | -0.13% | |
| GBP | -0.67% | 0.35% | 1.84% | -0.58% | -0.52% | 0.21% | 0.23% | |
| JPY | -2.39% | -1.35% | -1.84% | -2.28% | -2.29% | -1.60% | -1.55% | |
| CAD | -0.01% | 0.93% | 0.58% | 2.28% | 0.13% | 0.80% | 0.83% | |
| australian dollar | -0.09% | 0.87% | 0.52% | 2.29% | -0.13% | 0.73% | 0.75% | |
| new zealand dollar | -0.82% | 0.14% | -0.21% | 1.60% | -0.80% | -0.73% | 0.01% | |
| swiss franc | -0.83% | 0.13% | -0.23% | 1.55% | -0.83% | -0.75% | -0.01% |
This heat map displays percentage changes between major currencies, with the base currency listed on the left and the quote currency along the top. For instance, selecting USD from the left and JPY from the top shows the percentage change in the designated box.
After three days of gains, the U.S. dollar (USD) remained steady around 99.00 this Thursday morning in Europe. Chairman Powell is set to open the Community Banking Conference in Washington with prerecorded remarks. Other Federal Reserve figures, like President Michelle Bowman and Minneapolis Fed President Neal Kashkari, will also speak. Minutes from the previous Fed meeting revealed a tendency towards potential rate cuts this year, driven by concerns over the labor market and inflation dynamics.
In political news, the Senate’s attempt to pass a Republican temporary funding bill failed again, with a vote of 54-45. President Trump reassured reporters that federal employees impacted by the shutdown will have their pay restored.
Earlier, Trump announced an agreement between Israel and Hamas that could see hostages released by the upcoming Monday. Qatari sources confirmed details about hostages and troop withdrawals. Israeli Prime Minister Benjamin Netanyahu plans to convene parliament to discuss and approve the proposal. Following this news, U.S. stock index futures saw a slight uptick.
euro/usd European markets lagged behind on Thursday, dropping toward the 1.1600 mark. The European Central Bank is also expected to release the minutes from its September meeting today.
Following a 1% rise the day before, gold prices dipped slightly this morning as geopolitical tensions eased but remained above $4,000.
GBP/USD continued its downward trajectory, trading below 1.3400 on Thursday morning in Europe.
USD/JPY kept its bullish trend going, hitting its highest point since mid-February, trading above 153.00 as European markets opened.
Fed Frequently Asked Questions
In the U.S., monetary policy is guided by the Federal Reserve Board (Fed), which focuses on price stability and full employment. The primary means of achieving these objectives is through interest rate adjustments. If inflation escalates and surpasses the Fed’s 2% target, interest rates are raised, which raises borrowing costs across the economy. This can make the U.S. more appealing for investors, boosting the dollar’s value. Conversely, if inflation drops below 2% or unemployment rises, the Fed may lower interest rates, putting downward pressure on the dollar.
The Federal Reserve holds eight policy meetings annually where the Federal Open Market Committee (FOMC) evaluates economic conditions and determines monetary policy. Twelve officials attend these meetings, including seven board members, the president of the New York Fed, and four rotating regional bank presidents.
In unusual situations, the Federal Reserve may implement quantitative easing (QE), significantly increasing credit flow during economic slumps. This approach, utilized in times of crisis or very low inflation, involves the Fed creating more money to buy government bonds, which generally leads to a weaker dollar.
Quantitative tightening (QT) is the opposite of QE, where the Fed ceases to buy bonds and does not reinvest, positively impacting the dollar’s value.
