- The US Dollar Index is progressing alongside the US economy, which saw growth in the second quarter.
- Headline PCE is anticipated to increase by 2.6% year-over-year, while core PCE is predicted to rise 2.9% in July.
- Concerns regarding the Federal Reserve’s independence have intensified following comments from US Vice President Vance about the end of central bank autonomy.
The US Dollar Index (DXY), which gauges the dollar’s value against six major currencies, is hovering around 98.00 during Asian trading hours on Friday after experiencing a three-day decline.
Market participants are now looking forward to the July Personal Consumption Expenditures (PCE) Price Index, which is set to be released later during the North American Session. This will be the final major inflation data before the Federal Reserve’s September meeting. It’s estimated that the headline PCE will rise by 2.6% annually in July, while core PCE is expected to increase by 2.9%.
The dollar gained support from the growth of the US economy in the second quarter. The Gross Domestic Product (GDP) jumped by 3.3% in the second quarter, surpassing the initial estimate of 3.1% and reflecting a quicker pace than the earlier 3.0% growth.
In comments made on Thursday, Governor Christopher Waller expressed his support for interest rate cuts during the September meeting, as well as for further reductions in the following three to six months to avoid a collapse in the labor market.
Recent remarks from US Vice President JD Vance have raised alarms regarding the Fed’s independence. In an interview with USA Today on Thursday, Vance confirmed the cessation of the Federal Reserve’s autonomy, stating, “I don’t think bureaucrats should be allowed to make decisions on financial policies and interest rates without input from those elected to serve the American people… The President can make these decisions.”
Today’s US Dollar Price
The table below outlines the rate of change for the US dollar (USD) against various currencies, with the dollar being the strongest against the Swiss franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.18% | 0.10% | 0.09% | 0.05% | -0.09% | -0.05% | 0.19% | |
| EUR | -0.18% | -0.07% | -0.12% | -0.13% | -0.21% | -0.22% | -0.01% | |
| GBP | -0.10% | 0.07% | -0.10% | -0.06% | -0.15% | -0.10% | 0.06% | |
| JPY | -0.09% | 0.12% | 0.10% | 0.04% | -0.18% | -0.11% | 0.18% | |
| CAD | -0.05% | 0.13% | 0.06% | -0.04% | -0.16% | -0.08% | 0.11% | |
| AUD | 0.09% | 0.21% | 0.15% | 0.18% | 0.16% | -0.00% | 0.20% | |
| NZD | 0.05% | 0.22% | 0.10% | 0.11% | 0.08% | 0.00% | 0.21% | |
| CHF | -0.19% | 0.00% | -0.06% | -0.18% | -0.11% | -0.20% | -0.21% |
The heatmap displays the changes in each major currency relative to one another. The base currency can be selected from the left column, while the estimated currency is found in the top row. For instance, if the US dollar is chosen from the left and the Japanese Yen from the top row, the corresponding rate shows the relationship between USD and JPY.
