- The USD recovers positive traction after the modest decline on Friday and jumps to a maximum of more than a month.
- The optimism for the commercial agreement between the US and China relieves the fears of recession and drives USD in the middle of the aggressive pause of the Fed.
- The 10 -year American treasure reference performance touches a maximum of almost a month and further benefits the dollar.
The US dollar index (DXY), which follows the value of the dollar against a foreign exchange basket, captures aggressive offers at the beginning of a new week and rises to a maximum of more than a month, around the region of 101.35-101.40 during the first European session. The last stage of a sudden rebound in the last hour followed the highly anticipated joint statement of the US and China about the first round of commercial negotiations held during the weekend in Geneva, Switzerland.
US will modify the application of the tariff rate on China articles for an initial period of 90 days, and now only a base rate of 10%will be applied. China will also suspend its tariffs on the US, marking the end of the Commercial War of reprisals between the two largest economies in the world. This positive development helps relieve market concerns about a recession in the US, which, together with the aggressive pause of the Federal Reserve (Fed), provides a strong boost to the US dollar (USD).
The US Central Bank pointed out last week that it does not lean towards trimming of interest rates in the short term amid the increasing short -term inflation expectations due to US tariffs Additional to the dollar. Meanwhile, the secure shelter dollar seems to be quite indifferent to a new wave of global risk trade.
As investors digest the positively related to the market, the market approach now moves towards the publication of the latest US inflation figures – the consumer price index (CPI) and the production price index (IPP) on Wednesday and Thursday, respectively. Apart from this, the appearance of the president of the FED, Jerome Powell, is expected on Thursday to obtain more clues about the future path of feat cuts. This, in turn, will influence the dynamics of the USD price and will provide a new directional impulse to the index.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. US dollar was the strongest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.23% | 1.01% | 1.11% | 0.50% | 0.10% | 0.69% | 1.28% | |
| EUR | -1.23% | -0.10% | 0.43% | -0.22% | -0.49% | -0.06% | 0.53% | |
| GBP | -1.01% | 0.10% | 0.68% | -0.13% | -0.39% | -0.04% | 0.63% | |
| JPY | -1.11% | -0.43% | -0.68% | -0.61% | -1.61% | -1.27% | -0.05% | |
| CAD | -0.50% | 0.22% | 0.13% | 0.61% | -0.13% | 0.17% | 0.77% | |
| Aud | -0.10% | 0.49% | 0.39% | 1.61% | 0.13% | 0.35% | 0.96% | |
| NZD | -0.69% | 0.06% | 0.04% | 1.27% | -0.17% | -0.35% | 0.56% | |
| CHF | -1.28% | -0.53% | -0.63% | 0.05% | -0.77% | -0.96% | -0.56% |
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.
