The US Dollar Index (DXY) wraps up the week near the 99.00 mark, showing little change for the day and maintaining the ground it recovered after a brief dip following Thursday’s inflation report. The Greenback finds itself at a significant juncture, appearing stronger overall but still struggling to transform the hawkish narrative into a clear breakout.
US Dollar Price Today
Below is an overview of how the US Dollar (USD) has fared against major currencies today. Notably, it has performed best against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.14% | -0.10% | -0.48% | 0.26% | -0.21% | -0.22% | 0.46% | |
| EUR | -0.14% | -0.24% | -0.57% | 0.12% | -0.36% | -0.43% | 0.33% | |
| GBP | 0.10% | 0.24% | -0.35% | 0.37% | -0.13% | -0.17% | 0.58% | |
| JPY | 0.48% | 0.57% | 0.35% | 0.73% | 0.25% | 0.18% | 0.94% | |
| CAD | -0.26% | -0.12% | -0.37% | -0.73% | -0.48% | -0.55% | 0.21% | |
| AUD | 0.21% | 0.36% | 0.13% | -0.25% | 0.48% | -0.05% | 0.70% | |
| NZD | 0.22% | 0.43% | 0.17% | -0.18% | 0.55% | 0.05% | 0.76% | |
| CHF | -0.46% | -0.33% | -0.58% | -0.94% | -0.21% | -0.70% | -0.76% |
This table illustrates the percentage changes of major currencies in relation to each other, with the base currency on the left and the quote currency along the top. For instance, if you look at the USD and then follow along to the JPY, the percentage shown reflects the change in USD against JPY.
Much of the current sentiment revolves around the Federal Reserve’s decision on Wednesday, as many anticipate a quarter-point hike that would increase the target range to 4.00% from 3.75%. This comes after an August Consumer Price Index (CPI) report that showed core prices exceeding expectations. With this move largely anticipated, focus is now on the updated economic outlook and Chair Kevin Warsh’s press conference, which may indicate whether this hike is a one-time measure or part of a broader trend.
Canada will kick off the week with its August inflation report on Monday, paired with various Chinese economic data. On Tuesday, the UK labor market report and Germany’s ZEW sentiment survey are on deck. But Wednesday is pivotal, as the UK CPI and US Retail Sales figures—expected to show a rebound—will be released before the Fed’s decision and projections, along with Warsh’s press conference. The Bank of England (BoE) is set to follow on Thursday and the Bank of Japan (BoJ) will close out the week on Friday.
The European Central Bank (ECB) is quite active on the speaking front, with President Christine Lagarde and colleagues expected to address the public several times. However, Eurozone data will be relatively limited to final inflation confirmations, industrial production numbers, and the ZEW survey insights. Japan will also provide trade statistics and national CPI, and New Zealand will report its second-quarter Gross Domestic Product (GDP), while the Reserve Bank of Australia Governor Michele Bullock will speak on Thursday. Over all of this looms the ongoing situation in Iran and the Strait of Hormuz, which continues to impact energy prices.
EUR/USD wraps up around 1.1590, weakening slightly for the day. As the domestic data remains sparse, with only final inflation readings, industrial production, and the ZEW survey coming, the dynamic largely remains Dollar-centric leading into the Fed’s decision on Wednesday. A hawkish move may add pressure, but the Dollar’s past inability to maintain gains has supported the Euro.
GBP/USD is trading close to 1.3525, showing little change for the day and finally having a domestic calendar to pay attention to. On Tuesday, the jobs report is expected to show the unemployment rate ticking up to 5.0%, followed by Wednesday’s CPI, where core inflation is anticipated to rise to 2.7%. The BoE’s decision on Thursday is predicted to maintain rates at 3.75%, though there’s speculation about a notable number of votes for a hike. While Sterling has its own influences, the Fed ultimately has the larger impact.
In the case of USD/JPY, it’s hovering around 153.70, pushed down as a softer Dollar meets a stronger Yen. The key focus domestically will be the BoJ meeting on Friday, with speculation leaning toward a hike to 1.25%—this would be the highest Japanese rate in decades. Thursday’s national CPI will add fuel to the discussion. As the Fed and BoJ may both tighten within the same week, the risk leans toward further strengthening of the Yen.
AUD/USD sits near 0.7170 and stands out among the major currencies, remaining resilient as the weekend approaches. The domestic calendar is light, with Bullock’s speech being the highlight on Thursday, so the Aussie is relying on risk sentiment, Monday’s Chinese economic data, and guidance from the Fed. A surprise hawkish turn from the Fed poses the biggest threat to its recent performance.
West Texas Intermediate (WTI) Oil is trading around $100, having dropped more than 3% on the day without any specific Oil-related releases. The narrative remains geopolitical, as the tension surrounding Iran and the Strait of Hormuz sustains price levels, alongside the International Energy Agency’s warning of an increasing supply deficit. This week’s retreat illustrates just how quickly market sentiment can shift.
Gold is trading close to $4,350, nearing record highs after yet another strong session. Lacking its own drivers, the metal’s fate is closely tied to the Fed: should a hawkish hike and firm guidance emerge from Warsh, a pullback could be in the cards, while any sign of softness might extend its recent gains.
