Forex News
- Gold plunges over 3.3%, hitting a fresh yearly low at $3,880.
- Break below $3,886 confirms bearish pressure, exposing further downside risks.
- December hike odds fall to 70% despite Fed officials backing additional tightening.
Gold (XAU/USD) tanked to a new year-to-date (YTD) low of $3,880 on Friday, clearing the $3,900 threshold for the first time since October of last year. The Greenback and US Treasury yields edged higher, while risk appetite deteriorated and hawkish Fed rhetoric pushed prices lower. The XAU/USD trades at $3,884, down more than 3.3%.
XAU/USD extends its bearish breakdown on hawkish Fed rhetoric and high Oil prices
Price action suggests further downside in Bullion prices after clearing the key support level of $3,886 on October 28, 2025. Two of three Federal Reserve (Fed) officials called for additional tightening, while the three support a gradual approach.
Dallas Fed President Lorie Logan called for two more rate hikes. St. Louis Fed President Alberto Musalem called for another rate hike soon and added that policy remains too loose.
In the meantime, Richmond Fed President Thomas Barkin stated that he favors a gradual approach, though he recognized that inflationary pressure isspreading.
Despite the backdrop. the US Dollar failed to advance, while US Treasury yields edged lower.
In the US, the economy grew at a healthy 3.4% YoY in Q3, far exceeding forecasts. Core PCE inflation remained high at 3.1% YoY, up from September’s reading but in line with estimates. Although this could increase the likelihood of a Fed rate hike, investors have lowered the odds from around 84% on Wednesday, following the Fed’s decision, to 70%, according to the CME FedWatch Tool.
Bullion is also weighed down by the rise in energy prices, even though talks between the US and Iran are still ongoing, according to Axios. West Texas Intermediate (WTI), the US Oil benchmark, is up 0.5% near $102 per barrel.
Next week’s US economic calendar will be packed. Markets will be watching the October ISM Manufacturing and Services PMIs, along with a slew of jobs data. Labour-market figures include JOLTS, the ADP Employment Change, Initial Jobless Claims and the week’s highlight, Nonfarm Payrolls.
XAU/USD technical outlook: Gold prolongs its agony below $3,900
The overall trend is downward after Gold cleared $3,900, opening the door to a 12-month low. Momentum is bearish and about to turn oversold, meaning that the downtrend is strengthening as depicted by the Relative Strength Index (RSI).
If XAU/USD closes on the daily chart below the October 28, 2025, low of $3,886, the next stop is $3,800. Once surpassed, the next area of interest is the April 22, 2025, swing high-turned-support at $3,500.
For a bullish reversal, buyers must drive prices above $3,900 and $4,000. This would pave the way to test the $4,100 mark, ahead of the 100-day Simple Moving Average (SMA) of $4,213.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
DBS Group Research anticipates Vietnam’s October 2026 exports and retail sales to stay robust, while headline inflation hovers around 5%, above the 4.5% target. Strong electronics shipments, firm household spending and tourism underpin activity, but elevated transport, energy, food and material costs pose a policy challenge as authorities pursue at least 10% economic growth.
Robust demand with elevated inflation
"We expect Vietnam’s October 2026 goods exports and retail sales to remain robust at 42.0% yoy and 14.0% yoy year-to-date, respectively, while headline inflation is likely to stay elevated at around 5.0% yoy."
"Exports have continued to be supported by strong electronics and machinery shipments amid a favourable technology cycle with spillovers from robust artificial intelligence-related demand."
"Retail sales were likely bolstered by firm household spending, supported by favourable labour market conditions, and continued strength in tourism. "
"Headline inflation has remained elevated and above the central bank’s target of 4.5% for the year, driven by price pressures from transport and energy, food, as well as material costs. This poses a challenge for policymakers as they seek to balance inflation risks against ambitions of achieving at least 10% economic growth this year."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
United Overseas Bank strategists Quek Ser Leang and Lee Sue maintain a negative stance on USD/CNH, noting that the pair has been edging lower and remains under downward pressure. Short-term projections see scope to test nearby support, while the 1–3 week and 1–3 month views both favour continued gradual declines as long as the pair stays below key resistance and cloud boundaries.
Offshore Yuan strength caps Dollar
"24-HOUR VIEW: We expected USD to “edge lower” yesterday, but we pointed out that “slowing downward momentum suggests any decline should stay within a 6.6575/6.6655 range.” USD declined more than expected to 6.6559 before settling at 6.6564 (-0.07%). The downward pressure remains intact, and today, USD could edge lower and test 6.6520. A continued decline below this level is unlikely. Resistance is at 6.6605."
"1-3 WEEKS VIEW: Following our negative USD view from the middle of the month, we highlighted two days ago (28 Oct, spot at 6.6655) that “there is a chance for USD to test 6.6550.” Yesterday, USD declined to a low of 6.6559. While oversold, the decline has not stabilised, and USD could continue to edge lower. The next level to watch is 6.6450. On the upside, a breach of 6.6640 (‘strong resistance’ level previously at 6.6700) would indicate that USD is not declining further."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
- USD/JPY trades slightly lower as the Yen outperforms most major currencies.
- The BoJ’s hawkish hold and firmer inflation assessment support the Japanese Yen.
- A recovering US Dollar and expectations of further Fed rate hikes limit the USD/JPY’s decline.
USD/JPY holds trades on the back foot heading into the weekend as the Japanese Yen (JPY) outperforms most major currencies following the Bank of Japan’s (BoJ) hawkish hold. However, the pair has recouped some of its earlier losses as the US Dollar (USD) recovers. At the time of writing, USD/JPY trades around 157.43, off an intraday low of 156.96, and remains on track to end the month little changed.
As widely expected, the BoJ kept its policy rate unchanged at 1.25% in an 8-1 vote at its October meeting on Friday. Board member Hajime Takata dissented, favouring a 25-basis-point (bps) increase to 1.50% and arguing that conditions call for a faster move toward the neutral interest rate.
The central bank said it will continue raising interest rates as economic, price and financial conditions evolve. The timing and pace of further increases will depend on whether the economy and prices develop in line with its baseline outlook, as well as the risks surrounding it.
BoJ inflation upgrade keeps Yen rate hike odds firmly in play
Strategists at Brown Brothers Harriman underscore the significance of the Bank of Japan’s latest communication, noting that “for the first time since adopting the 2% target in 2013, the BoJ declared underlying CPI inflation ‘generally consistent’ with its goal.” In their view, that shift “strengthens the case for additional rate hikes to ensure inflation remains anchored there.”
They add that while the BoJ made only “minor growth revisions,” it “raised its inflation forecasts for 2027” and continues to see inflation risks “skewed to the upside,” with the risk to the economic outlook described as “generally balanced.” Despite the more confident inflation stance, BBH points out that “there was no material shift to BoJ rate expectations,” with the swaps curve still pricing in “80% odds of a 25bps BoJ rate hike to 1.50% at the December 18 meeting and nearly 75bps of tightening in the next twelve months.”
On the US side, the Greenback recovers after coming under pressure earlier on Friday as a technology stock sell-off drove demand for government bonds and pushed Treasury yields lower. Investors remain concerned about returns on heavy AI spending following disappointing earnings reports. The US Dollar Index (DXY), which tracks the Greenback against six major currencies, rebounds toward 102.00 after falling to 101.59.
Expectations of additional monetary policy tightening support the US Dollar. Traders price in around a 72% chance of a December rate hike, according to the CME FedWatch Tool. The latest Personal Consumption Expenditures (PCE) data showed US inflation remains above the Fed’s 2% target, while stronger-than-expected third-quarter Gross Domestic Product (GDP) growth gives the central bank more room to raise rates.
St. Louis Fed President Alberto Musalem reinforced that outlook on Friday, saying the US central bank would raise interest rates again soon and that current policy remains accommodative. He added that “gradual rate adjustments” are preferable to sudden moves.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | -0.08% | -0.16% | -0.22% | -0.00% | 0.02% | -0.03% | |
| EUR | -0.24% | -0.31% | -0.39% | -0.45% | -0.23% | -0.21% | -0.26% | |
| GBP | 0.08% | 0.31% | -0.06% | -0.13% | 0.09% | 0.11% | 0.05% | |
| JPY | 0.16% | 0.39% | 0.06% | -0.05% | 0.17% | 0.18% | 0.14% | |
| CAD | 0.22% | 0.45% | 0.13% | 0.05% | 0.21% | 0.23% | 0.18% | |
| AUD | 0.00% | 0.23% | -0.09% | -0.17% | -0.21% | 0.02% | -0.03% | |
| NZD | -0.02% | 0.21% | -0.11% | -0.18% | -0.23% | -0.02% | -0.04% | |
| CHF | 0.03% | 0.26% | -0.05% | -0.14% | -0.18% | 0.03% | 0.04% |
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 Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
OCBC strategists Sim Moh Siong and Christopher Wong note that USD/SGD has eased with the softer US Dollar (USD) and lower US yields, while Singapore’s import prices show strong energy-driven inflation. They retain a constructive medium-term view on the Singapore Dollar (SGD) but expect any USD/SGD pullback to stay shallow unless broader USD weakness deepens, with key support and resistance levels guiding near-term two-way trading.
Energy-driven inflation and range levels
"USD/SGD eased overnight, tracking the pullback in USD and US Treasury yields despite stronger-than-expected US GDP and still-elevated inflation. The mixed market response suggests that conviction on the next leg higher in USD remains limited, although resilient US activity and persistent price pressures may also continue to restrain USD declines."
"We retain a constructive medium-term SGD outlook, although scope for further trade-weighted outperformance may be limited with the S$NEER already trading in the upper half of the policy band. Near term, USD/SGD remains sensitive to USD, US Treasury yields and RMB developments. Any pullback in USD/SGD may remain relatively shallow in the interim unless we see a more meaningful decline in the broader USD."
"On the domestic front, Singapore’s September import prices rose 19.9% YoY, accelerating from 15.5% in August, largely driven by higher energy costs. Oil import prices surged 78.5% YoY, while non-oil import price inflation moderated slightly to 4.4% from 4.8%."
"The divergence suggests that imported price pressures remain largely energy-driven for now, although sustained increases in oil prices could eventually feed into broader inflation. Imported inflation risks remain a consideration for MAS, which maintained its appreciating S$NEER policy stance in October."
"Daily momentum is not indicating a clear bias while decline in RSI moderated. 2-way trades likely for now."
"Support at 1.2760 (50 DMA), 1.2740 (61.8% fibo retracement of 2026 low to high). Resistance at 1.2820/50 levels (100 DMA, 38.2% fibo)."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
On Friday, the Dallas Federal Reserve President Lorie Logan said that “at least two more quarter-point rate hikes” are needed. She added that skipping a hike “doesn’t change policy destination,” and that adjusting interest rates “gradually” reduces the risks of a sharp economic deterioration.
Logan added that is “unacceptable” that inflation is getting higher and that after increasing rates 50 basis points, “a pause would make sense” to determine the path going forward.
Key highlights:
Fed needs at least two more quarter-point rate hikes
Skipping a meeting doesn't change policy destination
Adjusting policy gradually can reduce risks of sharp economic deterioration
Gradual policy adjustment helps households, businesses, investors adapt to higher rates
End goal is to make policy modestly restrictive
Making policy rate destination clear helps economy adapt, obtain benefits of a skip
'Unacceptable' that inflation is not headed back to fed's 2% target
After 50 bps of rate hikes, a pause would make sense to determine what further action is appropriate
Financial conditions are providing a tailwind to the economy
Higher market rates a message that investors believe monetary policy has work to do
Long-term rates have risen, but don't represent much of a drag on economy as might be expected
Economic growth is strong, consumer spending solid
Labor market is balanced, perhaps tightening a bit
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
Commerzbank’s Charlie Lay reports that the Bank of Thailand kept its policy rate at 1.00%, with the MPC maintaining a hold but signalling a less dovish stance. Authorities highlight financial stability risks from prolonged low rates and see scope for gradual hikes as growth improves, yet expect policy to stay on hold through 2026–2027. USD/THB remains near the top of its recent 32.50–34.00 range.
Policy on hold, gradual hikes only later
"The Bank of Thailand (BoT) left its benchmark one-day repurchase rate at 1.00% as expected. The Monetary Policy Committee (MPC) voted 6-0, with one member absent, marking its fourth consecutive hold since the 25bp cut in February. The policy statement suggests a subtle shift towards a less dovish stance, although an imminent rate hike is unlikely."
"BoT highlighted potential financial stability risks from keeping interest rates low for an extended period, while Assistant Governor Don Nakornthab indicated that rates could be raised gradually as the economy strengthens to rebuild policy space. However, with growth still below potential and inflation largely supply-driven, BoT is likely to remain on hold for the remainder of 2026 and potentially through much of 2027. We would need to see a sustained rise in core inflation or a broad-based economic recovery for a change in BoT’s stance."
"For THB, downside pressures persist due to Fed tightening, higher oil prices, and Thailand's relatively low interest rates. USD/THB was unchanged yesterday at around 33.73. It remains at the upper end of the 32.50-34.00 range seen over the past five months."
"BoT's projection of a USD18bn current-account surplus in 2027 could provide some medium-term support for THB, although the currency is likely to remain sensitive to USD movements and global energy prices in the near term."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
The US Dollar (USD) regained the smile this week, reversing two consecutive pullbacks and trading close to its key 200-week SMA. The Greenback’s recovery has followed the persistent rise in crude Oil prices, in a context where a solution to the Middle East crisis appears nowhere to be seen. In addition, the hawkish message from the Federal Reserve (Fed) at its Wednesday meeting also propped up the buck’s recovery.
The US Dollar Index (DXY) trades with decent gains, ending the week around the 102.00 neighbourhood, a tad lower than the weekly high near 102.50. The final S&P Global Manufacturing PMI will kickstart the domestic calendar on November 2, followed by the ISM Manufacturing PMI and Construction Spending data. On November 3 will come the JOLTS Job Openings, Factory Orders, the RCM/TIPP Economic Optimism Index, and the API’s weekly report on US crude oil inventories, while results from the US Midterm Elections should start turning up. The usual MBA Mortgage Applications are due on November 4, seconded by the ADP Employment Change report, Balance of Trade results, the final S&P Global Services PMI, the ISM Services PMI, and the EIA’s weekly report on US crude oil stockpiles. The usual weekly Initial Jobless Claims are expected on November 5, alongside Challenger Job Cuts. The NFP, Unemployment Rate and the advanced U-Mich Consumer Sentiment gauge will all close the docket on November 6.
EUR/USD added to the previous week’s decline, revisiting the area of 17-month lows near the 1.1100 neighbourhood before staging a temporary bounce just past the 1.1200 mark on Thursday. Germany’s Retail Sales are due on November 2, along with the final S&P Global Manufacturing PMI in Germany and the Euroland. On November 4 will come the final S&P Global Services PMI in the EMU and Germany, followed by the preliminary Inflation Rate in the euro bloc. The S&P Global Construction PMI in Germany and the Eurozone is expected on November 5, seconded by Germany’s Factory Orders and Producer Prices in the bloc. Industrial Production in Germany is due on November 6 along with the EMU’s Producer Prices.
GBP/USD clinched its third consecutive week of gains, this time managing to reach the 1.3430 zone, or six-week peaks. The final S&P Global Manufacturing PMI is due on November 2, while the final S&P Global Services PMI is expected on November 4. The S&P Global Construction PMI comes on November 5, while the Lloyds House Price Index and the BBA Mortgage Rate will close the UK docket on November 6.
USD/JPY ended the week with decent gains in the low 157.00s, surrendering part of the earlier bull run north of the 158.00 hurdle. The final S&P Global Manufacturing PMI comes on November 2, followed by the Monetary Base figures on November 4. The final S&P Global Services PMI is due on November 5 along with the BoJ Minutes and a 10-Year JGB Auction. On November 6 will come Average Cash Earnings and the weekly Fooreign Bond Investment figures.
AUD/USD advanced marginally this week, enough to extend its recovery and consolidate the break above the 0.7000 threshold. The final S&P Global Manufacturing PMI is due on November 2, seconded by preliminary data from Building Permits and Private House Approvals. The Ai Group Manufacturing Index is due on November 3 alongside the final S&P Global Services PMI. On November 4, the Household Spending prints will be released, while the Balance of Trade results are expected on November 5.
Anticipating economic perspectives: Voices on the horizon
- Fed’s Goolsbee will speak on November 2.
- BoC’s Macklem speaks on November 3, seconded by the ECB’s Machado and Donnery.
- ECB’s Lane will speak on November 4.
- Fed’s Hammack and Barkin speak on November 5, followed by the ECB’s Lagarde, Schnabel and Lane.
- Fed’s Logan, Williams, Musalem and Bowman are due to speak on November 6 ahead of the ECB’s Donnery and the BoE’s Pill.
Central banks: Upcoming meetings to shape monetary policies
- RBA will decide on rates on November 3 (25 bps hike).
- Riksbank meets on November 4 (25 bps hike) along with the National Bank of Poland (unch).
- Norges Bank will meet on November 5 (unch), ahead of the BNM (unch), the BoE (25 bps hike) and Banxico (unch).
- The Australian Dollar gains 0.08% on Friday, supported by expectations of further monetary tightening in Australia.
- Australian inflation accelerated to 4.3% in September, boosting expectations of an interest rate hike in November.
- The Fed holds interest rates steady, while policymakers remain cautious about persistent inflationary pressures.
AUD/USD edges slightly higher on Friday, gaining 0.08% on the day to trade around 0.7035 at the time of writing. The Australian Dollar (AUD) benefits from growing expectations of an interest rate hike by the Reserve Bank of Australia (RBA), following hotter-than-expected inflation data and recent hawkish remarks from central bank officials.
The latest figures released on Wednesday by the Australian Bureau of Statistics (ABS) showed that the Consumer Price Index (CPI) rose 4.3% YoY in September, accelerating from 4% in August and exceeding market expectations of 4.2%. The renewed acceleration in inflation raises concerns about persistent price pressures and reduces the RBA's room to keep monetary policy unchanged.
RBA Governor Michele Bullock also struck a hawkish tone, indicating that the inflationary pressures that had concerned the central bank were beginning to emerge. Her comments have fueled speculation about another interest rate hike at the upcoming monetary policy meeting on November 3.
According to the ASX RBA Rate Tracker, markets now price in an 80% chance of an interest rate increase to 4.85% at the upcoming meeting, compared with 60% before the inflation data was released. This shift in monetary policy expectations supports the Australian Dollar, as investors increasingly anticipate that interest rates in Australia will remain elevated for longer.
On the US side, the US Dollar (USD) faces uncertainty surrounding the monetary policy outlook of the Federal Reserve (Fed). On Wednesday, the central bank left its benchmark interest rate unchanged within a range of 3.75%-4.00%, emphasizing the importance of incoming economic data in determining its next policy decisions.
Fed officials continue to monitor inflationary risks closely. On Friday, Richmond Fed President Thomas Barkin said that a gradual approach to interest rates remained appropriate, noting that the general direction of monetary policy was relatively straightforward, but that the pace of adjustments remained the key question.
Barkin also highlighted that US businesses are facing increasingly widespread cost pressures, prompting them to raise prices. He specifically pointed to the surge in artificial intelligence investment as an additional source of inflationary pressure, citing its impact on supply chains and overall demand.
These remarks suggest that the Fed could maintain a cautious approach amid persistent inflation. Nevertheless, growing expectations of monetary tightening in Australia continue to support AUD/USD, as investors now turn their attention to the RBA's next week policy decision.
AUD/USD technical analysis
In the one-hour chart, AUD/USD trades at 0.7035, holding a mildly bullish near-term bias as it consolidates above the 100-period simple moving average (SMA) at 0.7032 and the 200-period SMA at 0.7026. The pair is pressing toward the immediate horizontal barrier at 0.7040, while the Relative Strength Index (14) around 52 suggests steady but not overstretched buying interest, hinting that dips may attract demand as long as price holds over the underlying moving-average support.
On the topside, initial resistance emerges at 0.7040, ahead of a higher cap at 0.7055 and a more significant hurdle near 0.7068. On the downside, the 100-period SMA at 0.7032 forms the first layer of support, followed by the 200-period SMA at 0.7026, with deeper floors seen at the horizontal levels of 0.7010 and 0.6994 if corrective pressures intensify.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
On Friday, St. Louis Federal Reserve (Fed) President Alberto Musalem said that the Federal Reserve will need to raise rates “again soon” and, echoing earlier statements from Richmond Fed President Thomas Barkin, he prefers a gradual approach.
In prepared remarks for the Shadow Open Market Committee, a gathering of economists focused on the Fed, Musalem added that “inflation remains elevated,” hinting that further tightening is needed and that current monetary policy and financial conditions remain “accommodative.”
Key highlights:
Acting earlier with rate increases reduces risk to wider economy
Us central bank to hike interest rates again soon
Gradual rate adjustments preferable to sudden moves
Elevated long-term bond yields fueled by anticipated higher policy rates
Inflation remains elevated, unlikely to decline without central bank measures
Current monetary policy remains accommodative
Financial conditions continue to be accommodative
Best move now is restoring price stability
Financial conditions are tighter, but only slightly
Wider economy and labor market robust
Risks remain tilted toward elevated inflation
Inflation expectations remain steady
Q3 data confirm the underlying strength of the economy
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 Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.21% | -0.14% | -0.17% | -0.28% | -0.07% | -0.06% | -0.12% | |
| EUR | -0.21% | -0.34% | -0.35% | -0.47% | -0.26% | -0.27% | -0.31% | |
| GBP | 0.14% | 0.34% | -0.02% | -0.13% | 0.08% | 0.08% | 0.02% | |
| JPY | 0.17% | 0.35% | 0.02% | -0.10% | 0.10% | 0.10% | 0.05% | |
| CAD | 0.28% | 0.47% | 0.13% | 0.10% | 0.20% | 0.21% | 0.16% | |
| AUD | 0.07% | 0.26% | -0.08% | -0.10% | -0.20% | 0.00% | -0.04% | |
| NZD | 0.06% | 0.27% | -0.08% | -0.10% | -0.21% | -0.00% | -0.04% | |
| CHF | 0.12% | 0.31% | -0.02% | -0.05% | -0.16% | 0.04% | 0.04% |
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).
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
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