- DXY moves away from the YTD low set on Wednesday, albeit lacks bullish conviction.
- A modest uptick in the US Treasury bond yields offers some support to the Greenback.
- Rising odds for a larger Fed rate cut in September should cap any meaningful upside.
The US Dollar (USD) edges higher during the Asian session on Thursday and for now, seems to have snapped a four-day losing streak to a fresh YTD low touched the previous day. The uptick, however, lacks bullish conviction, with the USD Index (DXY), which tracks the Greenback against a basket of currencies, trading with gains of less than 0.10% for the day, around the 101.25 region.
A modest rebound in the US Treasury bond yields is seen as a key factor lending some support to the buck, though any further appreciating move seems elusive amid dovish Federal Reserve (Fed) expectations. The preliminary annual benchmark review of employment data published by the US Bureau of Labor Statistics showed that US employers added 818,000 fewer jobs than were reported during the year through March. This suggests that the US labor market is not as strong as estimated and supports prospects for a more aggressive policy easing by the Fed.
Furthermore, the minutes of the July 30-31 FOMC meeting revealed that a vast majority of officials backed the case for a rate cut in September, while some policymakers were leaning toward immediate action. Investors were quick to react and are now pricing in a 38% probability of a 50-basis points (bps) rate cut in September, up from 29% a day before. Moreover, the markets expect the Fed to announce about 100 bps worth of easing by the end of this year, which, in turn, should cap the US bond yields and hold back the USD bulls from placing aggressive bets.
Moving ahead, traders now look to Thursday's US economic docket – featuring the release of the usual Weekly Initial Jobless Claims and Existing Home Sales data – for some impetus later during the early North American session. The focus, however, will remain glued to Fed Chair Jerome Powell's speech at the Jackson Hole Symposium on Friday. Investors will scrutinize Powell's remarks to see if the significantly weaker labor market report makes a strong case for a larger interest rate cut in September, which, in turn, will influence the near-term USD price dynamics.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.05% | 0.03% | 0.13% | -0.07% | 0.17% | 0.15% | 0.03% | |
| EUR | -0.05% | -0.03% | 0.05% | -0.14% | 0.11% | 0.07% | -0.02% | |
| GBP | -0.03% | 0.03% | 0.08% | -0.11% | 0.13% | 0.09% | -0.01% | |
| JPY | -0.13% | -0.05% | -0.08% | -0.28% | 0.04% | -0.01% | -0.11% | |
| CAD | 0.07% | 0.14% | 0.11% | 0.28% | 0.25% | 0.20% | 0.10% | |
| AUD | -0.17% | -0.11% | -0.13% | -0.04% | -0.25% | -0.03% | -0.15% | |
| NZD | -0.15% | -0.07% | -0.09% | 0.01% | -0.20% | 0.03% | -0.11% | |
| CHF | -0.03% | 0.02% | 0.00% | 0.11% | -0.10% | 0.15% | 0.11% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD breaks below 1.1000 on stellar NFP
The buying bias in the Greenback gathers extra pace on Friday after the US economy created far more jobs than initially estimated in September, dragging EUR/USD to the area of new lows near 1.0950.
GBP/USD breaches 1.3100 after encouraging US Payrolls
The continuation of the uptrend in the US Dollar motivates GBP/USD to accelerates its losses and breaches 1.3100 the figure in the wake of the release of US NFP.
Gold rebounds from daily lows and flirts with $2,670
Following a post-NFP dip to the $2,640 region, Gold prices now embarks on an acceptable rebound and retest the area of $2,670 per ounce troy despite the marked advance in the US Dollar and rising US yields across the board.
US Payrolls surge in September, as 50bp rate cut ruled out
US payrolls data surprised on the upside in September, rising by 254k, smashing expectations of a 150k rise. The unemployment rate fell to 4.1% from 4.2%, average hourly earnings increased to a 4% YoY rate and there was a 72k upwards revision to the previous two months’ payrolls numbers.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.