The US dollar (USD) ended the week near a four-month low around 97.80, maintaining a faint tone amid risk aversion in financial markets. Concerns have intensified after US President Donald Trump threatened to impose 10% tariffs on eight European countries, which will boost over time unless Denmark agrees to sell Greenland to the United States. Tension remained high until Trump and NATO Secretary General Mark Rutte announced on Wednesday the framework for a future agreement on Greenland.
Additionally, the United States released updated gross domestic product (GDP) data for the third quarter (Q3), revising the annual growth rate for the three months ended September to 4.4%, down from the previous estimate of 4.3%.
The country also released personal consumption expenditure (PCE) price index data for October and November. The report showed annual inflation rose to 2.8% in November, up from 2.7% in October. Moreover, the core PCE Price Index increased by 2.8% in November, following a 2.7% boost in October, which was in line with market expectations.
DXY is trading near a weekly low of 97.80, hitting a multi-week low after lower-than-expected January US preliminary S&P Global Purchasing Managers Index (PMI) showed 51.9 (expected 52.1) for industrials and 52.5 (expected 52.8) for services.
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 euro.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.43% | -0.87% | -1.53% | -0.59% | -0.70% | -0.49% | -0.63% | |
| EUR | 0.43% | -0.44% | -1.14% | -0.16% | -0.27% | -0.06% | -0.20% | |
| GBP | 0.87% | 0.44% | -0.70% | 0.29% | 0.18% | 0.39% | 0.24% | |
| JPY | 1.53% | 1.14% | 0.70% | 1.02% | 0.90% | 1.10% | 0.96% | |
| BOOR | 0.59% | 0.16% | -0.29% | -1.02% | -0.12% | 0.09% | -0.04% | |
| AUD | 0.70% | 0.27% | -0.18% | -0.90% | 0.12% | 0.21% | 0.08% | |
| NZD | 0.49% | 0.06% | -0.39% | -1.10% | -0.09% | -0.21% | -0.14% | |
| CHF | 0.63% | 0.20% | -0.24% | -0.96% | 0.04% | -0.08% | 0.14% |
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: Flash estimates for purchasing managers’ indices (PMIs) overseen by Eurozone Hamburg Commercial Bank (HCOB) were mixed as the manufacturing index improved to 49.4 from 48.8 in December, remaining in withering territory, while the services PMI was at 51.9, down from 52.4. As a result, the Composite PMI remained at 51.5, slightly below the expected 51.6. Next week, the focus will be on euro zone and German GDP for the fourth quarter and German inflation for January.
GBP/USD is trading near the 1.3600 price area, a level not reached since September 2025. UK retail sales rose 0.4% m/m in December, beating estimates of a 0.1% decline. Year-over-year, sales increased from 1.8% to 2.5%, above forecasts of 1%. The S&P Global Services and Composite PMI indexes performed better in January than the December print, with service sector output rising from 51.4 to 54.3, the manufacturing PMI coming in at 51.6 from 50.6, and the Composite PMI rising from 51.4 to 53.9.
USD/JPY is trading near a two-week low of 156.00 after the Bank of Japan (BoJ) decided, as expected, to leave its policy assumptions unchanged at 0.75% at its first meeting this year. At a press conference after the meeting, BOJ Governor Kazuo Ueda refrained from commenting on foreign exchange levels.
AUD/USD is trading near 0.6880, reaching a level not reached since September 2024. This comes as the commodity-laden currency surges amid record gold levels.
Gold is trading at a record high of $4,988 as geopolitical tensions continue unabated.
Anticipating the economic outlook: voices on the horizon
- European Central Bank (ECB) Joachim Nagel will speak in London on Monday.
- On Tuesday we have another speech by Nagel with the participation of ECB President Christine Lagarde.
- Frank Elderson and Isabel Schnabel will speak at the ECB on Wednesday.
- Piero Cipollone from the ECB will speak on Thursday.
- To end the week, Federal Reserve (Fed) Alberto Musalem and Michelle Bowman will talk on Friday, and their talks will resume after the Fed announces its monetary policy.
Central banks: Upcoming meetings/communications aimed at shaping monetary policy
- The ADP 4-week average employment change will be released on Tuesday along with the Bank of Japan’s monetary policy report.
- Wednesday will begin with the December Consumer Price Index (CPI), and will continue with the Bank of Canada’s (BoC) interest rate decision (currently 2.25% vs. expected 2.25%), a monetary policy statement and a press conference.
- On Wednesday, the Fed will announce its decision on interest rates (expected to remain unchanged at 3.50%-3.75%) along with its monetary policy statement.
- Japan will release data on CPI, retail trade and unemployment in Tokyo on Thursday. The United States will also publish data on the number of unemployed and non-agricultural productivity for the third quarter.
- On Friday, Germany and the euro zone will publish preliminary data on GDP and the unemployment rate for the fourth quarter. Germany will also publish the preliminary harmonized index of consumer prices (HICP) for January.
- The United States will release December producer price index (PPI) data. Finally, on January 30, China will release the NBS Manufacturing and Non-Manufacturing Purchasing Managers’ Index (PMI).
(This story was amended at 19:46 GMT on 23 January to correct the flash reading of the UK manufacturing PMI, which rose to 51.6 in January from 50.6 the previous month, and the spelling of ECB member Cipollone.)
