The Latest on the US Dollar and Major Currencies
USD Index Consolidates Near 106.50
The US Dollar Index is in a consolidation phase, hovering around 106.50 after closing positively on Wednesday. Key events to watch today include:
- Weekly Initial Jobless Claims data
- Existing Home Sales figures for October
- Regional manufacturing surveys from the Federal Reserve (Fed) Bank of Philadelphia and Kansas City for November
US Dollar Price This Week
Strongest Against Japanese Yen
The table below shows the percentage change of the US Dollar (USD) against major currencies this week:
- USD: -0.04%
- EUR: 0.04%
- GBP: 0.24%
- JPY: -0.40%
- CAD: 0.86%
- AUD: 0.82%
- NZD: 0.03%
- CHF: 0.60%
Market Update
- USD resilient amid cautious market mood and modest increase in US Treasury bond yields
- Benchmark 10-year US Treasury bond yield at around 4.4%
- US stock index futures trade mixed
- Key speeches from Fed policymakers expected today
USD/JPY Under Bearish Pressure
After rising 0.5% on Wednesday, USD/JPY faces bearish pressure, trading below 155.00 early Thursday.
EUR/USD in Consolidation Phase
EUR/USD consolidates around 1.0550 post negative close on Wednesday. European Commission to release Consumer Confidence data for November.
Gold Continues Winning Streak
Gold extends gains for the third consecutive day, with XAU/USD trading above $2,660 in the European morning.
USD/CAD Finds Support
USD/CAD posts small gains after recent decline, fluctuating above 1.3950. Statistics Canada to release New Housing Price Index data for October.
GBP/USD Remains Stable
GBP/USD fails to capitalize on strong UK inflation readings, trading near 1.2650 in a narrow channel early Thursday.
Fed FAQs
Understanding Federal Reserve Policies
- Monetary Policy: Fed adjusts interest rates to achieve price stability and full employment, influencing the strength of the US Dollar.
- Policy Meetings: The FOMC holds eight meetings a year to assess economic conditions and make monetary policy decisions.
- Quantitative Easing (QE): Fed increases credit flow by buying bonds, weakening the US Dollar during crises or low inflation.
- Quantitative Tightening (QT): Fed stops buying bonds, strengthening the US Dollar by reducing the money supply.
This comprehensive overview of the US Dollar’s performance, key currency pairs, market updates, and Federal Reserve policies provides valuable insights for investors and individuals alike. Understanding these factors can help navigate the financial landscape and make informed decisions for a secure financial future.