US Dollar Holds Firm Post-Powell Interview, Focus on PMI Data

The US Dollar (USD) maintains its strength as the new week kicks off, building on the momentum from Friday’s significant surge. Geopolitical tensions and remarks from Federal Reserve Chair Jerome Powell, expressing a cautious stance on rate cuts, contribute to the positive sentiment for the USD. Investors are now turning their attention to the upcoming ISM Services PMI report.

The USD Index (DXY) experienced a notable 1% gain on Friday, fueled by robust Nonfarm Payrolls data for January, exceeding expectations with a rise of 353,000 jobs against the anticipated 180,000. Powell’s televised interview on Sunday reiterated the likelihood that March is too early for rate cuts, but adjustments could happen if there are signs of labor market weakness or convincing declines in inflation. The DXY touched its highest level since December above 104.00 during the Asian session, later moderating slightly in European trading.

Investors are closely monitoring developments in the forex market, driven by economic data and Powell’s insights, as they navigate the evolving landscape of global currencies.

US Dollar price today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Pound Sterling.

USD 0.01%0.10%0.00%-0.16%-0.13%-0.20%0.07%
EUR0.00% 0.10%0.00%-0.17%-0.14%-0.21%0.06%
GBP-0.11%-0.10% -0.10%-0.28%-0.23%-0.30%-0.04%
CAD0.00%0.00%0.10% -0.17%-0.14%-0.21%0.08%
AUD0.16%0.18%0.27%0.17% 0.04%-0.04%0.25%
JPY0.12%0.13%0.21%0.13%-0.03% -0.09%0.21%
NZD0.18%0.20%0.29%0.20%0.02%0.05% 0.26%
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 Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

Meanwhile, geopolitical tensions remain high at the beginning of the week following news of the US and the UK conducting a new wave of airstrikes on the Iran-backed Houthi militant group in Yemen over the weekend, hitting at least 30 targets. In retaliation, Yemen’s Houthi rebels vowed to extend their military operations and threatened to respond to the latest set of strikes. Reflecting the risk-averse market atmosphere, US stock index futures are down about 0.25% early Monday.

EUR/USD declined sharply on Friday and closed the third consecutive week in negative territory. The pair was last seen trading in a tight channel below 1.0800. HCOB will release revisions to January Services and Composite PMIs for Germany and the Eurozone.

GBP/USD continues to push lower toward 1.2600 after losing 0.9% on Friday. Bank of England Chief Economist Huw Pill will participate in an online Q&A at 17:30 GMT on Monday.

USD/JPY stretched higher in the Asian session on Monday and came within a touching distance of 149.00, setting its highest level since late November in the process. With the JPY benefiting from the souring risk mood, however, the pair retreated below 148.50.

Gold erased a large portion of its weekly gains on Friday as the benchmark 10-year US Treasury bond yield recovered above 4% after strong US labor market data. With the 10-year yield staying in positive territory early Monday, XAU/USD trades in the red at around $2,030.

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