- The USD faces continued challenges in gaining solid footing on Tuesday.
- Anticipation for additional interest rate cuts from the Fed keeps USD buyers cautious.
- Relief over potential US recession helps deter aggressive short-selling of the USD.
The US Dollar Index (DXY), which measures the dollar against a selection of currencies, is fluctuating around 100.35 during Tuesday’s Asian trading hours, remaining close to a weekly low it touched yesterday. Moreover, a lack of buying interest combined with a negative fundamental backdrop suggests that the index’s most likely trajectory is downward.
After a less-than-expected release of the US Consumer Price Index (CPI) and Producer Price Index (PPI) last week, traders are increasingly betting on more interest rate cuts by the Federal Reserve in 2025. On top of that, disappointing monthly retail sales figures have raised concerns about growth in upcoming quarters. This situation continues to act as a headwind for the USD, further impacted by an unexpected downgrade in the US government’s credit rating last Friday.
Conversely, the US and China have reached an agreement to significantly reduce tariffs, initiating a 90-day suspension to finalize broader trade deals. This event marks a pivotal moment in the ongoing economic tension between these two major economies, alleviating some concerns about a possible US recession. This relief may discourage traders from making aggressive bearish bets on the USD and helps to temper the impacts of recent hawkish comments from various FOMC members.
Looking ahead, there isn’t any significant economic data expected for release on Tuesday. As a result, attention will likely shift to remarks from influential FOMC members, which are crucial for guiding the USD’s direction after the North American trading session.
Today’s US Dollar Price
The table below shows the changes in the US dollar (USD) against listed currencies today. Notably, the US dollar performed strongest against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.11% | -0.13% | -0.23% | 0.04% | 0.43% | 0.05% | -0.16% | |
| EUR | 0.11% | -0.01% | -0.11% | 0.16% | 0.56% | 0.18% | -0.04% | |
| GBP | 0.13% | 0.00% | -0.12% | 0.16% | 0.54% | 0.20% | 0.00% | |
| JPY | 0.23% | 0.11% | 0.12% | 0.27% | 0.66% | 0.28% | 0.13% | |
| CAD | -0.04% | -0.16% | -0.16% | -0.27% | 0.40% | 0.01% | -0.17% | |
| AUD | -0.43% | -0.56% | -0.54% | -0.66% | -0.40% | -0.37% | -0.56% | |
| NZD | -0.05% | -0.18% | -0.20% | -0.28% | -0.01% | 0.37% | -0.18% | |
| CHF | 0.16% | 0.04% | -0.01% | -0.13% | 0.17% | 0.56% | 0.18% |
The heatmap illustrates the rate of change among major currencies. The base currency is listed on the left, while the estimated currency is across the top. To demonstrate, selecting USD from the left and moving to the right to JPY shows the rate of change in the box for USD relative to JPY.
