U S. Dollar Index Price

During his first testimony at Capitol Hill facing law makers, Federal Reserve (Fed) Chairman Jerome Powell did not leave many clues about the timing for another interest rate cut by the central bank, if any. Traders are mulling what to do next, with US yields slowly but surely starting to head higher this week. The dollar index (DXY00) on Friday fell by -0.52%, posting a new 2-month low and adding to Thursday’s decline of -0.58%. The dollar was undercut by Friday’s weak US retail sales report and a -5 bp decline in the 10-year T-note yield, which added to Thursday’s decline of -9 How much does a forex trader make bp. Also, there were continued fears about a global trade war after President Trump on Friday said that new tariffs on autos are coming around April 2. But there’s been no evidence of disinflation with the core CPI rate since the middle of last year, writes Conrad DeQuadros, senior economic advisor at Brean Capital.

Fed Needs to See Resumed Inflation Progress Before Cutting Rates

• The U.S. Bureau of Labor Statistics released the January reading of the consumer price index this morning.
• President Trump has already announced the imposition of tariffs on some of America’s trading partners, and we assume there will be more levies, which will be matched by foreign retaliation, in the coming quarters.
• When the central bank hikes interest rates substantially, this is called monetary tightening.
• The dollar index (DXY00) on Friday fell by -0.52%, posting a new 2-month low and adding to Thursday’s decline of -0.58%.
• Traders are mulling what to do next, with US yields slowly but surely starting to head higher this week.
• A central bank will try to push forward its monetary policy without triggering violent swings in rates, equities, or its currency.

The US Dollar Index, which tracks the US Dollar’s performance against six major currencies, remains stable after losses in the previous session. At the time of writing, the DXY hovers around 107.00, while yields on 2-year and 10-year US Treasury bonds stand at 4.31% and 4.53%, respectively. We looked at the forecasts for Apple stock in 10 years to see where the price would likely be at that point and the challenges the company could face. We assess the likely level of the Microsoft stock price in 5 years, and possible drivers behind the stock’s past performance.

DXY chart

After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study. For example, a price above its moving average is generally considered an upward trend or a buy. Another concern for economists is that January’s stronger-than-expected inflation reading doesn’t even reflect the potential impact of President Donald Trump’s proposed tariffs on prices. But even core inflation—which excludes the more volatile food and energy prices— warmed up last month; the metric had been more stable amid the fallout from bird flu and higher oil prices. Core inflation surged by 0.4% month over month in January, after rising just 0.2% in December. Compared to a year ago, core CPI measured 3.3% year over year, an acceleration from December’s 3.2% pace.

Browse our live DXY chart to get all the information you need on the rate of the US Dollar Index today.

Each member in that board often has a certain conviction on how the central bank should control inflation and the subsequent monetary policy. Members that want a very loose monetary policy, with low rates and cheap lending, to boost the economy substantially while being content to see inflation slightly above 2%, are called ‘doves’. Members that rather want to see higher rates to reward savings and want to keep a lit on inflation at all time are called ‘hawks’ and will not rest until inflation is at or just below 2%. Bird flu continued to wreak havoc on food prices in January, but stronger readings in several other categories also pushed up overall price growth.

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The dollar index, which measures the U.S. currency against the other world reserve currencies, broke out to the upside after the early November U.S. election. It was more of the same this past weekend as tariffs and trade fights remain the name of the game. “While I don’t want to discount the data altogether, I think there is good reason to think that the next few months will look considerably better than this month did,” Winograd said. Fed Chair Jerome Powell said officials need to see more progress on slowing inflation before considering further interest-rate cuts.

Fed News & Analysis

And the so-called supercore measure, which excludes food, energy, and housing, was at an elevated 4.1% year over year in January. Seasonal factors, such as minimum wage increases and annual pricing updates, likely accounted for some of inflation’s strength last month. Since the pandemic, January has routinely posted firmer readings that tend to fade in the second half of the year. Additionally, the effects of the Los Angeles wildfires might have pushed used car prices higher, a trend that should fade quickly. The consumer price index rose 0.5% in January and 3% from a year earlier, according to the latest data released Wednesday from the Bureau of Labor Statistics.

This is to be expected since the average includes data from the previous, lower priced days. As long as prices remain above the average there is strength in the market. New Highs/Lows only includes stocks traded on NYSE, NYSE Arca, Nasdaq or OTC-US exchanges with over 5 days of prices, with a last price above $0.25 and below $10,000, and with volume greater than 1000 shares. Overall services inflation (excluding energy services) rose 0.5% month over month in January, up 4.3% compared with a year ago. Inflation was hotter than expected last month, but it’s worth keeping in mind that annual pricing shifts and even minimum wage increases can plague consumer prices at the start of a new year. The continuation of the offered stance in the Greenback coupled with declining US yields across the board underpin the extra rebound in Gold prices, which trade at shouting distance from their record highs.

• This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events.
• Supercore jumped up to 0.8% month over month in January and stands at an elevated 4.1% year over year, according to Nationwide Chief Economist Kathy Bostjancic.
• My late friend and long time CBOT floor reporter Gary Wilhelmi used to cringe at the mention of Turnaround activity, so I still mention it occasionally in memory of him.
• That was significantly stronger than economists had forecast and a notable acceleration from December’s monthly rise of 0.4% and 2.9% year-over-year measure.
• Last month’s hotter-than-expected inflation levels will no doubt create more headaches for the Federal Reserve—and likely will reignite the debate over whether interest-rate hikes may be on the table.
• “While I don’t want to discount the data altogether, I think there is good reason to think that the next few months will look considerably better than this month did,” Winograd said.

ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE US DOLLAR INDEX

When the central bank hikes interest rates substantially, this is called monetary tightening. In theory, the direction of the moving average (higher, lower or flat) indicates the trend of the market. Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts. Of course, even dismissing some of the uptick, the January data aren’t a good reading for Federal Reserve officials—especially when it comes to the so-called supercore measure, which excludes food, energy, and housing.

The Barchart Technical https://www.forex-reviews.org/ Opinion rating is a 40% Buy with a Weakest short term outlook on maintaining the current direction. My late friend and long time CBOT floor reporter Gary Wilhelmi used to cringe at the mention of Turnaround activity, so I still mention it occasionally in memory of him. The commodity complex in general took a breather overnight, not overly surprising given recent moves made by many markets.

Follow the rate of the US Dollar Index (DXY) in real-time at Capital.com to spot the best trading opportunities. New delayed trade updates are updated on the page as indicated by a “flash”. Natural gas and cocoa futures posted double-digit percentage gains in December 2024. The worst-performing futures markets were palladium and world sugar futures, with over 8% declines. Markets are still relearning not to coinbase exchange review move on every statement or action from the US administration, but hearing into Thursday’s session volatility is expected to stay high.

The US Dollar Index (DXY) is stuck in a game of Cluedo, and detective Fed Chairman Powell is not giving away much to nearly no clues. With traders left clueless about what or when the Fed will make its next move, slowly but surely, bonds are getting back in the graces of traders as a safe place to be in periods of uncertainty. With this, the US Dollar should solely but surely see some inflow and tick higher. The economic calendar is gearing up for Fed Chairman Jerome Powell who will give a speech for the second day in a row at Capitol Hill. Atlanta Fed President Raphael Bostic and Fed Governor Waller are set to make comments as well. Capital Com Online Investments Ltd is a limited liability company with company number B.