The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six other major currencies, falls below 106.00 during the Asian hours on Friday, with 2-year and 10-year bond yields standing at 4.21% and 4.23%, respectively, at the time of writing.
The US Dollar faces downward pressure as US Treasury yields decline, driven by rising bond prices following President-elect Donald Trump’s appointment of Wall Street veteran and fiscal conservative Scott Bessent as the next US Treasury Secretary.
Markets are closely monitoring upcoming US data for further clues about the Federal Reserve's (Fed) monetary policy direction. On Wednesday, US core PCE prices for October met expectations, keeping investor hopes alive for another rate cut in December. However, other data indicated a resilient economy, suggesting that the Fed may take a cautious approach in the coming year.
The latest Federal Open Market Committee's (FOMC) Meeting Minutes for the policy meeting held on November 7, indicated that policymakers are adopting a cautious stance on cutting interest rates, citing easing inflation and a robust labor market.
According to the CME FedWatch Tool, futures traders are now pricing in a 66.5% probability of a 25 basis point rate cut in December, up from 55.9% a week ago. However, they expect the Fed to keep rates unchanged during its January and March meetings.
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Japanese Yen.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | -0.13% | -0.16% | -0.84% | -0.17% | -0.18% | -0.30% | -0.16% | |
EUR | 0.13% | -0.04% | -0.75% | -0.03% | -0.05% | -0.18% | -0.03% | |
GBP | 0.16% | 0.04% | -0.73% | -0.00% | -0.01% | -0.14% | 0.00% | |
JPY | 0.84% | 0.75% | 0.73% | 0.69% | 0.67% | 0.53% | 0.68% | |
CAD | 0.17% | 0.03% | 0.00% | -0.69% | -0.02% | -0.14% | 0.00% | |
AUD | 0.18% | 0.05% | 0.01% | -0.67% | 0.02% | -0.13% | 0.01% | |
NZD | 0.30% | 0.18% | 0.14% | -0.53% | 0.14% | 0.13% | 0.14% | |
CHF | 0.16% | 0.03% | -0.00% | -0.68% | -0.01% | -0.01% | -0.14% |
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).
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