The US dollar (USD) fell this week amid geopolitical uncertainty and developments in United States (US) trade policy after the Supreme Court declared the Trump administration’s tariffs illegal, to which Trump responded by imposing a novel round of tariffs. On the other hand, the release of stronger than expected Producer Price Index (PPI) data could not revive the dollar.
The US Dollar Index (DXY) is trading near the 97.60 price area, losing about 0.20% on the day and ending the week with a delicate decline as investors remain cautious amid geopolitical and trade uncertainty.
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 British pound.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.16% | 0.09% | -0.09% | -0.35% | -0.02% | -0.14% | -0.77% | |
| EUR | 0.16% | 0.25% | 0.06% | -0.19% | 0.14% | 0.01% | -0.61% | |
| GBP | -0.09% | -0.25% | -0.19% | -0.40% | -0.11% | -0.23% | -0.85% | |
| JPY | 0.09% | -0.06% | 0.19% | -0.23% | 0.08% | -0.05% | -0.66% | |
| BOOR | 0.35% | 0.19% | 0.40% | 0.23% | 0.32% | 0.19% | -0.42% | |
| AUD | 0.02% | -0.14% | 0.11% | -0.08% | -0.32% | -0.12% | -0.74% | |
| NZD | 0.14% | -0.01% | 0.23% | 0.05% | -0.19% | 0.12% | -0.62% | |
| CHF | 0.77% | 0.61% | 0.85% | 0.66% | 0.42% | 0.74% | 0.62% |
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).
EUR/USD is trading near the 1.1810 price zone, paring losses during the US session, after the preliminary German Harmonized Index of Consumer Prices (HICP) for February was published below expectations at 2% y/y from the expected 2.1% and 0.4% from 0.5% m/m. Additionally, investors assessed the testimony of European Central Bank (ECB) Christine Lagarde before the European Parliament. She insisted that inflation was on track to return to 2% over time and that pressure on food prices would gradually ease by 2026. She also said she would not leave her post before the end of her term, erasing speculation about another ECB president for now.
GBP/USD is trading near the 1.3470 level, recovering from almost re-touching the monthly low it hit earlier this month. On the other hand, Bank of England (BoE) Governor Andrew Bailey signaled that there is room to cut interest rates amid expectations that inflation will return to the 2% target.
USD/JPY is trading near the 156.00 price zone, in the neutral zone after recovering almost all intraday losses. Tokyo’s Consumer Price Index (CPI) rose 1.6% y/y in February and the ex Fresh Food print fell below the Bank of Japan’s (BoJ) target of 2% for the first time since 2024.
AUD/USD is trading near the 0.7120 level, after reversing losses from trading in the green. Market attention now turns to the Australian TD-MI inflation index, which is due to be released on Monday.
USD/CAD is trading near the price zone at 1.3630, reaching its lowest position in almost two weeks as investors analyze data from the US and Canada. According to Statistics Canada, Canadian gross domestic product (GDP) fell 0.6% year-over-year in the fourth quarter, following a revised 2.4% growth in the previous quarter.
Gold is trading near $5,260, hitting a one-month high amid geopolitical uncertainty. The yellow metal is trying to regain its all-time high of $5,598, which it hit earlier this year.
Anticipating the economic outlook: voices on the horizon
Sunday, March 1:
Monday, March 2:
- Elderson EBC.
- Nagel of the ECB.
- President of the ECB Lagarde.
- Ramsden from the BoE.
- RBA Governor Bullock.
Tuesday, March 3:
- Governor of BoJ Ueda
- Williams of the Fed.
- Sleijpen owned by the ECB.
- Kocher from the ECB.
- Kaskari Fed.
Wednesday, March 4:
- Cipollone from the ECB.
- BoC Governor Macklem.
- De Guindos from the ECB.
Thursday, March 5:
- De Guindos from the ECB.
- Kocher from the ECB.
- President of the ECB Lagarde.
Friday, March 6:
- Cipollone from the ECB.
- Daly Fed.
- Hammock Fed.
- Paulson of the Fed.
Central bank meetings and upcoming data releases to shape monetary policy
Monday, March 2:
- Australian TD-MI Inflation Index.
- China’s February Dog Manufacturing PMI rankings.
- Retail sales in Germany in January.
- Real retail sales in January in Switzerland.
- Spain February HCOB Industrial PMI.
- Italy February HCOB Industrial PMI.
- Germany February HCOB Industrial PMI.
- Canadian February S&P Global Manufacturing PMI.
- ISM manufacturing employment index in the US in February.
- Index of novel orders in the ISM industry in the US in February.
- American February ISM manufacturing PMI.
- US ISM production prices paid in February.
- New Zealand January Building permits sa
- Unemployment rate in Japan in January.
Tuesday, March 3:
- Australian building permits in January.
- Eurozone HICP.
- Italian February flash CPI.
- AiG Australian Industry Index.
- Australian February S&P global PMI.
- Australian February Global Services PMI.
Wednesday, March 4:
- Australian GDP for the fourth quarter.
- China February NBS Manufacturing PMIs.
- Chinese February RatingDog Services PMI.
- Swiss February CPI.
- Spain February HCOB PMI.
- Germany February HCOB PMI.
- Eurozone February HCOB PMI.
- Eurozone January PPI.
- Italy’s GDP for the fourth quarter.
- Employment change at ADP in the USA.
- US Global Composite PMI for February
- U.S. ISM employment index for February.
- US ISM New Orders Index, February.
- USA, February ISM Services PMI.
- February US ISM service prices paid.
- Fed Beige Book.
Thursday, March 5:
- Australian January trade balance.
- Retail sales in January in the euro zone
- In February, there were job cuts at Challenger in the US
- Initial applications for unemployment benefits in the USA
- Productivity in the U.S. nonfarm sector
- Preliminary unit labor costs in the USA (Q4).
Friday, March 6:
- Germany January Factory Orders nsa
- Change in employment in the euro zone (Q4).
- Euro area GDP (quarter) (4th quarter).
- Average hourly earnings in February in the USA.
- Labor force participation rate in February in the USA.
- Data on non-farm payrolls in the US in February.
- January retail sales in the US.
- U6 underemployment rate in February in the US.
- Unemployment rate in the US in February
- Canadian February Ivey PMIs.
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 apply 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 support 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 powerful dollar tends to keep the gold price in check, while a weaker dollar will likely cause gold prices to rise.
