US Dollar Consolidates Below 101.50 as Investors Await Key Inflation Data
The US Dollar (USD) Index is in a consolidation phase below 101.50 after two days of gains. Eurostat will release the Harmonized Index of Consumer Prices (HICP) for August, while investors focus on July Personal Consumption Expenditures (PCE) Price Index data, the Federal Reserve’s preferred inflation gauge.
US Dollar PRICE This week
The table below shows the percentage change of US Dollar (USD) against major currencies this week, with the USD strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.99% | 0.28% | 0.45% | -0.24% | -0.17% | -0.56% | -0.01% | |
| EUR | -0.99% | -0.76% | -0.53% | -1.21% | -1.24% | -1.52% | -0.97% | |
| GBP | -0.28% | 0.76% | 0.11% | -0.52% | -0.49% | -0.84% | -0.28% | |
| JPY | -0.45% | 0.53% | -0.11% | -0.66% | -0.53% | -0.78% | -0.37% | |
| CAD | 0.24% | 1.21% | 0.52% | 0.66% | 0.06% | -0.28% | 0.23% | |
| AUD | 0.17% | 1.24% | 0.49% | 0.53% | -0.06% | -0.30% | 0.26% | |
| NZD | 0.56% | 1.52% | 0.84% | 0.78% | 0.28% | 0.30% | 0.55% | |
| CHF | 0.01% | 0.97% | 0.28% | 0.37% | -0.23% | -0.26% | -0.55% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row.
The USD strengthened on upbeat macroeconomic data, with revised GDP growth for Q2 at 3% and lower weekly Jobless Claims. US stock index futures are higher, and the 10-year US Treasury bond yield remains around 3.85%.
In Asia, Australia’s Retail Sales remained flat in July, impacting AUD/USD near 0.6800. EUR/USD is below 1.1100, while GBP/USD struggles near 1.3150. Japan’s CPI rose to 3.6%, but USD/JPY trades below 145.00.
Gold rebounded on Thursday, with XAU/USD around $2,520 on Friday morning.
For more information on inflation and its impact on currencies, check the FAQs below:
Inflation FAQs
Inflation measures the rise in the price of a representative basket of goods and services. Core inflation excludes volatile elements like food and fuel, targeted by central banks to maintain around 2%.
Consumer Price Index (CPI) measures the change in prices of goods and services over time, with Core CPI influencing interest rates and currency values.
Higher inflation can increase a currency’s value as central banks raise interest rates to combat inflation, attracting more capital inflows.
Gold’s value fluctuates with inflation rates, as higher inflation leads to higher interest rates, affecting Gold’s appeal as an investment.