This is what you need to know to operate today, May 23:
The US dollar (USD) has difficulty maintaining its position in front of its rivals on Friday, after registering marginal profits on Thursday. The European Central Bank (ECB) will publish the data of salary rates negotiated for the first quarter. Later in the day, the sale of new housing in April will be the only highlight in the US economic calendar for the weekend, investors will continue to pay special attention to the speeches of those responsible for policies of the central banks.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. US dollar was the weakest currency against pound sterling.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.34% | -1.44% | -1.33% | -1.13% | -0.74% | -1.00% | -1.27% | |
| EUR | 1.34% | -0.12% | 0.05% | 0.27% | 0.73% | 0.40% | 0.07% | |
| GBP | 1.44% | 0.12% | -0.12% | 0.40% | 0.85% | 0.53% | 0.20% | |
| JPY | 1.33% | -0.05% | 0.12% | 0.22% | 0.77% | 0.54% | 0.12% | |
| CAD | 1.13% | -0.27% | -0.40% | -0.22% | 0.40% | 0.13% | -0.20% | |
| Aud | 0.74% | -0.73% | -0.85% | -0.77% | -0.40% | -0.32% | -0.64% | |
| NZD | 1.00% | -0.40% | -0.53% | -0.54% | -0.13% | 0.32% | -0.33% | |
| CHF | 1.27% | -0.07% | -0.20% | -0.12% | 0.20% | 0.64% | 0.33% |
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).
The president of the United States (USA), Donald Trump, approved a broad bill of taxes and expenses in the House of Representatives controlled by Republicans Thursday by a narrow margin. The Senate is expected to begin discussions on the bill after the Fallen Day Holiday on May 26 and vote on him before July 4. The 10 -year American treasure bonus yield fell more than 1% on Thursday and was last observed down 4.5%.
Meanwhile, the USD index remains in negative territory around 99.50 after registering small profits on Thursday. The data published by S&P Global showed that the economic activity in the US private sector expanded at an accelerated pace in May, with the index composed of purchasing managers (PMI) going up to 52.1 from 50.6 in April. Finally, the futures of the US stock market rates are modestly listed up to the European morning.
EUR/USD It benefits from the renewed weakness of the USD and quotes comfortably above 1,1300 on Friday.
GBP/USD He acquires bullish impulse and trades at its highest level since February 2022 about 1,3500.
USD/JPY It remains down and descends around 143.00 at the beginning of Friday. Japan’s prime minister, Shigeru Ishiba, reiterated on Friday that there were no changes in Japan’s position on US tariffs and their demand for them to be eliminated. In addition, Reuters reported that Japan’s Minister of Economy, Ryosei Akazawa, plans to visit USA around May 30 for the fourth round of conversations.
After correcting down, The gold He recovers his impulse on Friday. At the time of the press, the Xau/USD quoted around $ 3,330, rising approximately 1% in the day.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
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.
