- The US Dollar Index is encountering difficulties after the release of lower-than-anticipated US inflation data.
- The consumer price index increased by 2.3% in April, falling just short of the 2.4% forecast based on March figures.
- President Donald Trump characterized his relationship with China as excellent.
The US Dollar Index (DXY), which monitors the US dollar’s performance against a selection of six key currencies, remained around 100.90 during Wednesday’s Asian trading session, showing restraint for the second consecutive day. The dollar has weakened following the softer inflation report. Traders are particularly focused on the upcoming US Producer Price Index (PPI) and the University of Michigan Consumer Sentiment Survey later this week.
According to data from the US Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) saw a year-on-year rise of 2.3% in April. The core CPI, excluding food and energy costs, rose by 2.8% year-over-year, aligning with earlier figures and predictions. Both the headline and core CPI increased by 0.2% month-over-month.
These April figures represent a three-year low for annual headline inflation. However, analysts suggest that this could be the last significant CPI report for some time due to expected three-digit tariffs related to the Trump administration’s dealings with key trading partners in May.
On a more optimistic note, downward pressures on the US dollar index might be limited following a positive development in US-China trade negotiations over the weekend in Switzerland. Preliminary agreements indicate a substantial reduction in tariffs, with US tariffs on Chinese goods dropping from 145% to 30%, while China will bring down its tariffs on US imports from 125% to 10%. This move is seen as a crucial step toward easing trade tensions.
President Trump told Fox News that he is working to broaden access to the Chinese market, describing US-China relations as excellent and expressing his commitment to engage directly with President Xi regarding a more comprehensive trade agreement.
Today’s US Dollar Price
The following table outlines changes in the US dollar (USD) against various currencies, showing that the dollar was notably weaker against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | 0.00% | -0.15% | -0.01% | -0.15% | -0.08% | -0.01% | |
| EUR | 0.00% | 0.00% | -0.18% | -0.02% | -0.14% | -0.10% | -0.01% | |
| GBP | -0.00% | -0.00% | -0.18% | -0.01% | -0.15% | -0.11% | -0.01% | |
| JPY | 0.15% | 0.18% | 0.18% | 0.15% | 0.01% | 0.05% | 0.13% | |
| CAD | 0.00% | 0.02% | 0.00% | -0.15% | -0.14% | -0.07% | -0.00% | |
| AUD | 0.15% | 0.14% | 0.15% | -0.01% | 0.14% | 0.06% | 0.13% | |
| NZD | 0.08% | 0.10% | 0.11% | -0.05% | 0.07% | -0.06% | 0.07% | |
| CHF | 0.01% | 0.01% | 0.01% | -0.13% | 0.00% | -0.13% | -0.07% |
The heatmap illustrates the rate of change among the major currencies, with the base currency taken from the left column and the estimated currency from the top row. For instance, selecting US dollars from the left and moving to the Japanese Yen across the row shows the rate of change in the corresponding box.
