- The US dollar index faces challenges after US inflation data more soft than expected.
- The consumer price index rose 2.3% year -on -year in April, slightly below 2.4% in March and market expectations.
- The US president Donald Trump described the relationship with China as excellent.
The American dollar index (DXY), which tracks the US dollar (USD) compared to a basket of six main currencies, remains subdued for the second consecutive day, around 100.90 during the Asian session on Wednesday. The dollar weakened after US inflation data than expected. The operators now focus their attention on the next US production price index (IPP) and the consumer’s feeling survey at Michigan University, both scheduled for later this week.
According to data from the US Labor Statistics Office (BLS), the Consumer Price Index (CPI) rose 2.3% year -on -year in April, slightly below the 2.4% of March and market expectations. The underlying IPC, which excludes food and energy, increased by 2.8% annually, in line with the previous figure and forecasts. In monthly terms, both the general and underlying CPI increased 0.2%.
April figures mark a new minimum of three years for annual general inflation. However, analysts expect this to be the last firm report of the CPI for a while, since the three -digit tariffs of the Trump administration on key commercial partners will enter into force in May.
Even so, the downward pressure on the index of the US dollar can be limited after an advance in commercial conversations between the US and China during the weekend in Switzerland. Both parties reached a preliminary agreement to substantially reduce tariffs: US tariffs on Chinese goods will fall from 145% to 30%, while China will reduce tariffs on US imports from 125% to 10%. This movement is widely seen as a significant step towards reducing commercial tensions.
The US president Donald Trump told Fox News that he is working to expand access to Chinese markets and described the relations between the US and China as excellent, adding that he is open to direct negotiations with President XI on a broader commercial agreement.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the weakest currency against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | 0.00% | -0.15% | -0.01% | -0.15% | -0.08% | -0.01% | |
| EUR | 0.00% | 0.00% | -0.18% | -0.02% | -0.14% | -0.10% | -0.01% | |
| GBP | -0.00% | -0.00% | -0.18% | -0.01% | -0.15% | -0.11% | -0.01% | |
| JPY | 0.15% | 0.18% | 0.18% | 0.15% | 0.01% | 0.05% | 0.13% | |
| CAD | 0.00% | 0.02% | 0.00% | -0.15% | -0.14% | -0.07% | -0.00% | |
| Aud | 0.15% | 0.14% | 0.15% | -0.01% | 0.14% | 0.06% | 0.13% | |
| NZD | 0.08% | 0.10% | 0.11% | -0.05% | 0.07% | -0.06% | 0.07% | |
| CHF | 0.01% | 0.01% | 0.01% | -0.13% | 0.00% | -0.13% | -0.07% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
