- The American dollar index remains strong while investors adopt a cautious posture before the decision on the interest rates of the Federal Reserve.
- The attention is focused on the comments of the president of the Fed, Jerome Powell, particularly in the context of the growing tariff tensions.
- The US Treasury Secretary, Scott Besent, and Commerce representative, Jamieson Greer, will meet with the viceprimer Chinese minister He Lifeng this weekend.
The US dollar index (DXY), which tracks the value of the dollar (USD) compared to a basket of six main currencies, is being negotiated around 99.50 during the European hours on Wednesday, bouncing after losing more than 0.50% in the previous session.
The dollar is gaining force as the markets become cautious before the decision on the Federal Reserve interest rates (Fed), which is expected for later in the American session. It is widely expected that the FED maintains its reference rate without changes in 4.25–4.50% by the third consecutive meeting in May 2025. This pause reflects the central bank effort to balance the inflation cooling signals with a strong labor market and a growing uncertainty about US commercial policy.
The US economy was contracted in the first quarter, with a GDP that decreased at an annualized 0.3%rate, mainly driven by an increase in imports, since companies and consumers rushed to stock up before anticipated tariff increases. Despite this deceleration, inflation metrics such as the consumer price index (CPI) and the prices of personal consumption expenses (PCE) continue to show price pressures, while employment data remains robust. Even so, investors are increasingly valuing the possibility of softer economic conditions in the coming months.
Market participants will probably follow the comments of the president of the FED, Jerome Powell, especially in the middle of the growing tariff tensions and the renewed political pressure of President Trump, urging to cuts of fees.
In parallel, the US Treasury Secretary, Scott Besent, and the trade representative, Jamieson Greer, are scheduled for a meeting with the Vice Prime Chinese Minister He Lifeng in Geneva this weekend. This will be the first high -level meeting since the US climbed the tariffs, increasing global commercial tensions. The China Ministry of Commerce confirmed its participation after evaluating Washington’s proposals in the light of the opinion of the national industry and global feeling.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the strongest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | 0.09% | 0.63% | 0.05% | 0.24% | 0.09% | 0.39% | |
| EUR | 0.02% | 0.10% | 0.65% | 0.07% | 0.26% | 0.11% | 0.42% | |
| GBP | -0.09% | -0.10% | 0.52% | -0.03% | 0.16% | 0.01% | 0.31% | |
| JPY | -0.63% | -0.65% | -0.52% | -0.58% | -0.39% | -0.48% | -0.21% | |
| CAD | -0.05% | -0.07% | 0.03% | 0.58% | 0.20% | 0.05% | 0.34% | |
| Aud | -0.24% | -0.26% | -0.16% | 0.39% | -0.20% | -0.14% | 0.14% | |
| NZD | -0.09% | -0.11% | -0.01% | 0.48% | -0.05% | 0.14% | 0.29% | |
| CHF | -0.39% | -0.42% | -0.31% | 0.21% | -0.34% | -0.14% | -0.29% |
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.
