The U.S. dollar (USD) saw little change this week as markets assessed U.S. President Donald Trump’s nomination of Kevin Warsh, a former member of the Federal Reserve (Fed) Board of Governors, as the next Fed chairman, as well as a partial U.S. government shutdown that pushed employment and inflation data to next week. The closure was finally resolved on Wednesday when President Trump signed the funding bill into law.
The US Dollar Index (DXY) is trading near the 97.60 price zone after hitting two-week highs on Friday. Next week, the four-week average of changes in U.S. employment according to ADP will be released on Tuesday, non-farm payrolls data on Wednesday, and unemployment claims on Thursday.
Today’s US dollar price
The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the Japanese yen.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.33% | -0.55% | 0.05% | -0.27% | -1.03% | -0.92% | -0.36% | |
| EUR | 0.33% | -0.23% | 0.39% | 0.06% | -0.70% | -0.59% | -0.04% | |
| GBP | 0.55% | 0.23% | 0.62% | 0.29% | -0.48% | -0.37% | 0.19% | |
| JPY | -0.05% | -0.39% | -0.62% | -0.31% | -1.08% | -0.97% | -0.41% | |
| BOOR | 0.27% | -0.06% | -0.29% | 0.31% | -0.77% | -0.66% | -0.10% | |
| AUD | 1.03% | 0.70% | 0.48% | 1.08% | 0.77% | 0.11% | 0.67% | |
| NZD | 0.92% | 0.59% | 0.37% | 0.97% | 0.66% | -0.11% | 0.56% | |
| CHF | 0.36% | 0.04% | -0.19% | 0.41% | 0.10% | -0.67% | -0.56% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select 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).
The EUR/USD pair is trading near the price zone of 1.1820, which means an boost of over 0.30% a day after the European Central Bank (ECB) announced its decision on monetary policy at the beginning of the week. On Monday, the Sentix investor confidence index for February will be published, and on Friday, information on employment changes in the euro zone.
GBP/USD is trading near the 1.3610 price area, paring some of its weekly losses after the Bank of England (BoE) remained dovish on its interest rate decision. January’s BRC comparable retail sales data will be released on Monday, while industrial and manufacturing output data will be released on Thursday.
USD/JPY is trading near the 157.10 level, climbing to a two-week high. Japan’s general election will be held on Sunday with the release of the NSA’s December cash and current account results.
USD/CAD is trading near the 1.3650 price region, cutting off half of its weekly gains. Canada will not have relevant data releases next week.
With the U.S. crisis resolved, gold is trading near $4,960 and geopolitical tensions are on alert as the yellow metal struggles to attract buyers.
Anticipating the economic outlook: voices on the horizon
Sunday 8:
Monday 9:
- ECB belt.
- Nagel of the ECB.
- President of the ECB Lagarde.
Tuesday 10:
- Hammock Fed.
- Logan from the Fed.
Wednesday 11:
- Cipollone from the ECB.
- Bowman Fed.
- Schnabel ECB.
- Hammock Fed.
Thursday 12:
- Cipollone from the ECB.
- ECB belt.
- Nagel of the ECB.
Friday the 13th:
- Logan from the Fed.
- Mirana from the Fed.
- De Guindos from the ECB.
- BoE pill.
Saturday 14:
- President of the ECB Lagarde.
Central bank meetings and upcoming data releases to shape monetary policy
Tuesday 10:
- US retail sales in December.
Wednesday 11:
- China January Consumer Price Index (CPI).
- Data on non-farm payrolls in the US in January.
Thursday 12:
- UK preliminary gross domestic product (GDP) (Q4).
Friday the 13th:
- RBNZ Inflation expectations (Q1).
- Swiss January CPI.
- Eurozone preliminary GDP (Q4).
- CPI in the USA in January.
Gold FAQs
Gold has played a key role in human history as it has been widely used as a store of value and a medium of exchange. Nowadays, beyond its luster and operate in jewelry, the precious metal is widely viewed as a safe-haven asset, meaning it is considered a good investment in turbulent times. Gold is also widely seen as a hedge against inflation and currency depreciation because it is not tied to any particular issuer or government.
Central banks are the largest holders of gold. To support their currencies in turbulent times, central banks typically diversify their reserves and purchase gold to improve the perceived strength of the economy and currency. High gold reserves may provide a source of confidence in the country’s solvency. According to data from the World Gold Council, central banks added 1,136 tons of gold to their reserves in 2022, worth about $70 billion. This is the highest annual purchase since registration began. Central banks in emerging economies such as China, India and Turkey are rapidly increasing their gold reserves.
Gold has an inverse correlation with the US dollar and US treasury bonds, which are both major reserve assets and protected haven assets. When the dollar depreciates, gold tends to rise, allowing investors and central banks to diversify their holdings in turbulent times. Gold is also inversely correlated with risky assets. A rally in the stock market tends to weaken the price of gold, while sell-offs in riskier markets favor the precious metal.
The price may change due to many factors. Geopolitical instability or fear of a deep recession can quickly cause gold prices to rise due to its safe-haven status. Gold, as a non-yielding asset, tends to rise at lower interest rates, while the higher cost of money tends to weigh on the yellow metal. Still, most of the movements depend on the behavior of the US dollar (USD) when the asset is priced in dollars (XAU/USD). A robust dollar tends to keep the gold price in check, while a weaker dollar will likely cause gold prices to rise.
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