- The Dollar corrects lower after a six-day rally.
- The widening gap between US and Japanese Treasury yields is likely to keep US downside attempts limited.
- US Retail Sales data, due later today might provide an additional boost to the Dollar.
The US Dollar retreated slightly on Tuesday, after a nearly 3% appreciation in a six-day rally. The current reversal looks like a corrective reaction, which will probably be a mild one considering the US Treasury yield’s rally.
The benchmark US 10-year yield is appreciating for the seventh consecutive day to reach levels past 4.40%. The widening gap between the US and the Japanese bond yields is likely to act as a headwind for Yen’s recovery.
Strong US data is supporting the USD
US macroeconomic data points out a strong growth in the fourth quarter. Investors remain confident that the Fed will cut rates in December although the bank might highlight the storing economic momentum and the higher inflation to adopt a more hawkish forward guidance.
The Bank of Japan, on the contrary, is expected to keep rates on hold on Thursday, after having hinted at a 25 bps cut until last week. Some dovish comments by BoJ officials suggest that the bank might wait till January to assess the implications of Trump´s policies in the US.
In the calendar today, US Retail Sales are expected to show a buoyant consumption. This, coupled with the strong services activity figures released this week, are likely to keep US Dollar downside attempts limited, at least until the outcome of the Fed meeting.
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 | 0.21% | -0.10% | -0.22% | 0.23% | 0.46% | 0.37% | 0.29% | |
| EUR | -0.21% | -0.31% | -0.42% | 0.01% | 0.27% | 0.15% | 0.05% | |
| GBP | 0.10% | 0.31% | -0.10% | 0.33% | 0.56% | 0.47% | 0.38% | |
| JPY | 0.22% | 0.42% | 0.10% | 0.43% | 0.66% | 0.56% | 0.49% | |
| CAD | -0.23% | -0.01% | -0.33% | -0.43% | 0.23% | 0.14% | 0.06% | |
| AUD | -0.46% | -0.27% | -0.56% | -0.66% | -0.23% | -0.09% | -0.19% | |
| NZD | -0.37% | -0.15% | -0.47% | -0.56% | -0.14% | 0.09% | -0.09% | |
| CHF | -0.29% | -0.05% | -0.38% | -0.49% | -0.06% | 0.19% | 0.09% |
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 Gains look limited by 1.1570 Premium
EUR/USD trades well on the defensive for the second day in a row, revisinting the mid-1.1300s on the back of the continuation of the upside impulse in the US dollar. The move followed firmer US PMI data and news indicating the White House may be considering tariff cuts on Chinese imports.
GBP/USD deflates to the sub-1.3300 area, USD bulls prevail
GBP/USD remained on the back foot Wednesday, slipping below the 1.3300 level as the Greenback gained further traction. The Dollar’s solid performance was supported by strong US data and fading concerns over a renewed escalation in the US–China trade dispute.
Gold corrected extreme conditions, struggles around $3,300
Gold extended its decline on Wednesday, slipping below the $3,300 mark per troy ounce in response to reports from the media suggesting the Trump administration is weighing tariff reductions on Chinese goods, a news that revived hopes of easing trade tensions and reduced demand for the yellow metal as a safe-haven asset.
Bitcoin bullish momentum builds as premium exceeds 9% for first time in three months
Bitcoin price is extending its gains, trading above $94,000 at the time of writing on Wednesday, following a two-day rally of 9.75% so far this week. BTC rally gathers momentum as trade war fears ease, following US President Donald Trump’s downplaying of tensions with China.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.