The U.S. dollar (USD) held steady on Friday following the release of key data, but the U.S. dollar index (DXY) posted a manageable weekly gain of almost 1%. December core personal consumption expenditure (PCE) rose 3% y/y, above market forecasts, signaling an escalate in inflationary pressures and supporting the US dollar. In addition, preliminary fourth-quarter gross domestic product (GDP) in the US fell to 1.4% from the expected 3%, which affects the attractiveness of investors for the dollar.
The US Dollar Index (DXY) is trading near the 97.80 level, struggling to attract buyers following weaker-than-expected GDP. The U.S. will release December factory orders on Monday. Tuesday will see the release of the ADP four-week average employment change, the December Home Price Index and the February Consumer Confidence Report. On Thursday, the main topic of the American session will be the number of applications for unemployment benefits. Finally, the United States will release the Chicago Purchasing Managers Index (PMI).
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 Swiss franc.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | -0.19% | 0.00% | -0.05% | -0.34% | -0.04% | 0.02% | |
| EUR | 0.08% | -0.11% | 0.05% | 0.04% | -0.24% | 0.05% | 0.10% | |
| GBP | 0.19% | 0.11% | 0.19% | 0.14% | -0.15% | 0.16% | 0.21% | |
| JPY | 0.00% | -0.05% | -0.19% | -0.04% | -0.34% | -0.04% | 0.02% | |
| BOOR | 0.05% | -0.04% | -0.14% | 0.04% | -0.31% | -0.00% | 0.07% | |
| AUD | 0.34% | 0.24% | 0.15% | 0.34% | 0.31% | 0.31% | 0.40% | |
| NZD | 0.04% | -0.05% | -0.16% | 0.04% | 0.00% | -0.31% | 0.06% | |
| CHF | -0.02% | -0.10% | -0.21% | -0.02% | -0.07% | -0.40% | -0.06% |
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 1.1780 price area, with the dollar falling following the US Supreme Court’s ruling against President Donald Trump’s tariffs. On Monday, the German IFO reports will be published along with the January CPI in Italy. On Wednesday, the focus will be on Germany’s GDP and the March GfK consumer confidence survey. On Thursday, the February indicator of business climate, consumer confidence and economic sentiment in the euro zone will be published. On Friday, Germany will publish data on changes and unemployment rates along with Spain’s February preliminary Harmonized Index of Consumer Prices (HICP).
GBP/USD is trading near the 1.3490 price zone, losing ground on the week as United Kingdom (UK) employment data and inflation supported a BoE rate cut next month, reinforcing market expectations for such a move.
AUD/USD is trading near 0.7080 after rising and falling throughout the day, but remains in the green as the US session fades out. Australia will release private capital spending data on Thursday.
USD/JPY is trading near the 155.10 price zone, recovering almost all of its gains after weaker-than-expected US data. The January Large Retail Sales, Retail Trade and Retail Trade SA fairs will be held in Japan on Thursday
USD/CAD is trading near the 1.3690 price area, little changed after Canadian retail sales fell 0.4% m/m in December, slightly better than the expected 0.5% decline but reversing November’s 1.2% gain. Canada will release its current account report on Thursday.
Gold is trading at $5,077, recovering almost all of this week’s losses as market uncertainty increases.
Anticipating the economic outlook: voices on the horizon
Monday, February 23:
- Taylor of the BoE.
- Waller Fed.
- Lagarde from the ECB.
Tuesday, February 24:
- Goolsbee Fed.
- Bostic Fed.
- Collins of the Fed.
- Chef Fed.
- Barkin Fed.
Wednesday, February 25:
- US President Donald Trump.
- RBA Governor Bullock.
- Schmid Fed.
- Musalem Fed.
Thursday, February 26:
- Lagarde from the ECB.
- Lombardelli of the BoE.
- Bowman Fed.
Friday, February 27:
- BoE pill.
- Kocher from the ECB.
Central bank meetings and upcoming data releases to shape monetary policy
Sunday, February 22:
Wednesday, February 25:
Thursday, February 26:
Friday, February 27:
- Swiss GDP (Q4).
- Flash February CPI in Germany in February.
- Preliminary February HICP index in Germany.
- Canadian GDP (Q4).
- US Producer Price Index (PPI)
(This story was corrected on February 20 at 21:16 GMT to say that EUR/USD did not fall; instead, the dollar fell after the US Supreme Court ruled against Trump’s tariffs.)
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 utilize 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 safe and sound 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 mighty dollar tends to keep the gold price in check, while a weaker dollar will likely cause gold prices to rise.
