USD Index Soars: What You Need to Know
As the top investment manager in the world, it is crucial to stay informed about the latest market trends. The US Dollar (USD) Index experienced a remarkable 2% surge last week, marking its most significant one-week gain since 2024. Currently, the index is in a consolidation phase around 102.50 as we kick off the new week in the European morning. Here’s a breakdown of what’s happening:
Key Economic Data Releases
- Eurostat will publish Retail Sales data for August.
- The US Economic Docket will feature Consumer Credit Change for August.
Federal Reserve Speeches
During the American trading hours, keep an eye out for speeches from several Federal Reserve (Fed) policymakers, including Governor Michelle Bowman.
US Dollar Price Movement in the Last 7 Days
The USD has shown strength against major currencies in the past week, with the Japanese Yen being the most impacted. Here’s a snapshot of the percentage changes:
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|
For a detailed analysis of how the USD has fared against other major currencies, refer to the heat map provided above.
Market Highlights
- The upbeat employment data for September propelled the USD higher.
- Nonfarm Payrolls (NFP) exceeded market expectations, rising by 254,000.
- EUR/USD extended its downtrend, touching a low near 1.0950.
- GBP/USD fluctuated around 1.3100 post the US labor market data release.
- BoJ raised the economic assessment for two of Japan’s regions.
- Gold faced downward pressure despite USD strength.
US Dollar FAQs
For those looking to deepen their understanding of the US Dollar (USD), here are some frequently asked questions:
What Is the US Dollar?
The USD is the official currency of the United States and holds a significant position globally, being the most traded currency in the world.
What Influences the Value of the US Dollar?
Monetary policy, shaped by the Federal Reserve (Fed), plays a pivotal role in determining the value of the USD. The Fed’s actions, such as adjusting interest rates, impact the currency’s strength.
What Is Quantitative Easing (QE) and Quantitative Tightening (QT)?
QE is a policy tool used by the Fed to increase credit flow in the financial system, while QT involves reducing bond purchases. Both policies have implications for the value of the US Dollar.