Forex News
- The US Dollar finds support from stronger-than-expected US macroeconomic indicators
- The Japanese Yen strengthens following firm comments from Japanese authorities on the FX market
- USD/JPY trades around 156.40, down about 0.40% on Tuesday
USD/JPY trades around 156.40 on Tuesday at the time of writing, down 0.40% on the day. The pair remains under pressure despite a US Dollar (USD) supported by a string of better-than-expected US data, as the move is largely offset by renewed strength in the Japanese Yen (JPY).
On the US side, the US Dollar benefits from robust macroeconomic data that confirm the resilience of the United States (US) economy. The US Bureau of Economic Analysis reports that the economy expanded at an annualized rate of 4.3% in the third quarter, well above the previous estimate of 3.3% and market expectations of 3.8%. Inflation components of the report also surprise to the upside, with the GDP Price Index rising 3.7% in the third quarter and Core Personal Consumption Expenditures increasing 2.9%, highlighting persistent price pressures.
Labor market indicators also contribute to the US Dollar’s strength. The ADP Employment Change report shows private sector job growth remains contained, reinforcing the view of a still-tight labor market despite signs of moderation. Industrial Production edges down 0.1% MoM in October, missing expectations but not enough to challenge confidence in the broader economic outlook. At the same time, US Conference Board Consumer Confidence falls in December to 89.1 from 92.9 previously, pointing to some softening in household sentiment amid high interest rates and ongoing inflation concerns.
Despite this fundamental support for the US Dollar, USD/JPY moves lower, weighed down by a firmer Japanese Yen (JPY). Japan’s currency rebounds on expectations of potential intervention by Japanese authorities in response to the rapid depreciation of the JPY. Japan’s Finance Minister, Satsuki Katayama, says the government has full freedom to act against excessive moves in the foreign exchange market and will take appropriate action if necessary. These remarks trigger profit-taking on short JPY positions, even though many investors believe the impact of such warnings could be short-lived without stronger fundamental backing.
From a monetary policy perspective, the stance of the Bank of Japan (BoJ) continues to limit the Japanese Yen’s upside potential. After raising its policy rate by 25 basis points to 0.75%, the BoJ maintains a cautious tone and provides no clear guidance on the timing of further rate hikes. Former Bank of Japan board member Makoto Sakurai says the next rate increase could come around the middle of next year, while warning that additional tightening may become more difficult thereafter.
Against this backdrop, USD/JPY remains caught between support from solid US fundamentals and a firmer Japanese Yen driven by intervention risks and the Bank of Japan’s cautious approach, keeping the pair modestly lower on the session.
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 | -0.16% | -0.17% | -0.39% | -0.27% | -0.53% | -0.61% | -0.31% | |
| EUR | 0.16% | -0.01% | -0.24% | -0.11% | -0.37% | -0.46% | -0.16% | |
| GBP | 0.17% | 0.01% | -0.21% | -0.10% | -0.36% | -0.45% | -0.15% | |
| JPY | 0.39% | 0.24% | 0.21% | 0.11% | -0.13% | -0.26% | 0.09% | |
| CAD | 0.27% | 0.11% | 0.10% | -0.11% | -0.24% | -0.35% | -0.05% | |
| AUD | 0.53% | 0.37% | 0.36% | 0.13% | 0.24% | -0.08% | 0.22% | |
| NZD | 0.61% | 0.46% | 0.45% | 0.26% | 0.35% | 0.08% | 0.30% | |
| CHF | 0.31% | 0.16% | 0.15% | -0.09% | 0.05% | -0.22% | -0.30% |
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).
- GBP/USD pares gains after testing levels above 1.3500.
- Mixed US data offers limited direction for the US Dollar, as strong Q3 growth contrasts with softer activity data.
- Markets continue to price in further monetary policy easing by the Federal Reserve into 2026.
The British Pound (GBP) pares earlier gains against the US Dollar (USD) on Tuesday as traders digest a mixed batch of US economic data. At the time of writing, GBP/USD trades around 1.3478, easing slightly after climbing to its highest level since October 1, near 1.3518.
Sterling eased modestly as the US Dollar found support following stronger-than-expected US Q3 Gross Domestic Product (GDP) data. The US Bureau of Economic Analysis reported that the US economy expanded at an annualised pace of 4.3% in Q3, beating the 3.3% market forecast and accelerating from the previous 3.8% estimate.
Inflation metrics within the GDP report remained firm. The GDP Price Index rose 3.7% in Q3, above the 2.7% market forecast and up from 2.1% in Q2. Core Personal Consumption Expenditures increased 2.9% in Q3, in line with expectations and higher than 2.6% in Q2, while Personal Consumption Expenditures Prices rose 2.8% in Q3, matching forecasts and accelerating from 2.1% in Q2.
Durable Goods Orders fell 2.2% in October, compared with expectations for a 1.5% decline and following a 0.7% rise in September. Orders excluding defense declined 1.5% in October, down from a 0.1% increase in September, while orders excluding transportation rose 0.2% in October, below the 0.3% forecast and slowing from 0.7% in September.
Industrial Production fell 0.1% MoM in October and then rebounded 0.2% MoM in November, beating the 0.1% market forecast.
US Conference Board Consumer Confidence slipped in December, with the index falling to 89.1, missing the 91.0 market forecast. While the reading was above the initially reported 88.7 for November, that figure was later revised higher to 92.9.
Despite the mild rebound in the US Dollar, the broader outlook remains tilted to the downside, as markets continue to price in further monetary policy easing by the Federal Reserve (Fed) into 2026.
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 | -0.10% | -0.15% | -0.42% | -0.24% | -0.49% | -0.62% | -0.19% | |
| EUR | 0.10% | -0.05% | -0.33% | -0.13% | -0.39% | -0.52% | -0.10% | |
| GBP | 0.15% | 0.05% | -0.27% | -0.10% | -0.34% | -0.46% | -0.05% | |
| JPY | 0.42% | 0.33% | 0.27% | 0.19% | -0.04% | -0.22% | 0.25% | |
| CAD | 0.24% | 0.13% | 0.10% | -0.19% | -0.23% | -0.39% | 0.06% | |
| AUD | 0.49% | 0.39% | 0.34% | 0.04% | 0.23% | -0.13% | 0.29% | |
| NZD | 0.62% | 0.52% | 0.46% | 0.22% | 0.39% | 0.13% | 0.43% | |
| CHF | 0.19% | 0.10% | 0.05% | -0.25% | -0.06% | -0.29% | -0.43% |
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).
Citing a filing from the US Trade Representative's office, Reuters reported on Tuesday that the US will set new tariffs on semiconductors from China. According to the document, the initial tariff level of 0% will increase in 18 months to a rate to be announced later.
Market reaction
This headline failed to trigger a noticeable market reaction. At the time of press, the S&P 500 Index was down 0.07% on the day, while the Nasdaq Composite was losing 0.2% at 25,411.40.
- US CB Consumer Confidence Index declined by 3.8 points in December.
- The US Dollar Index stays in negative territory near 98.00.
Consumer sentiment in the United States weakened for the fifth consecutive month in December, with the Conference Board's Consumer Confidence Index declining to 89.1 from 92.9 in November.
"The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—plummeted by 9.5 points to 116.8 in December," the Conference Board noted in its press release and added:
"The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—held steady at 70.7."
Market reaction
The US Dollar Index stays under modest bearish pressure in the American session on Tuesday and was last seen losing 0.2% on the day at 98.05.
- The Australian Dollar advances after the release of the RBA Minutes, highlighting more persistent inflation risks
- RBA policymakers point to a data-dependent approach and do not rule out tighter policy further down the road
- Stronger-than-expected US data underpin the US Dollar, capping the pair’s upside
AUD/USD trades around 0.6680 on Tuesday at the time of writing, up 0.40% on the day. However, the pair is slightly off a three-month high of 0.6700 reached earlier in the day, with the pullback triggered by better-than-expected US economic releases that provided fresh support to the US Dollar.
The Australian Dollar finds support after the publication of the Reserve Bank of Australia (RBA) Minutes from its December monetary policy meeting. The Minutes reveal that board members are becoming less confident that current monetary policy settings remain sufficiently restrictive, as evidence mounts that inflation pressures may prove more persistent than previously expected.
The Reserve Bank of Australia emphasized a data-dependent approach going forward, noting that several inflation indicators will be released ahead of the February meeting. Policymakers discussed whether a rate increase might be needed at some point in 2026, while stressing that it would take more time to properly assess the persistence of inflationary pressures.
Market pricing reflects this cautious stance. Australian 30-Day Interbank Cash Rate Futures for February 2026 imply a relatively low chance of a near-term rate hike, although expectations for tighter policy later on remain in place. Meanwhile, Australia’s Consumer Inflation Expectations rose to 4.7% in December from November’s three-month low of 4.5%, reinforcing the RBA’s hawkish bias amid elevated inflation risks.
On the US side, the US Dollar draws support from a string of stronger-than-expected macroeconomic releases. The US Bureau of Economic Analysis reported that the economy expanded at an annualized rate of 4.3% in the third quarter, well above the previous estimate of 3.3% and market expectations of 3.8%. Inflation components of the report also surprised to the upside, with the GDP Price Index rising 3.7% in Q3, while Core Personal Consumption Expenditures increased 2.9%, underscoring persistent price pressures in the US economy.
Labor market indicators have also contributed to the US Dollar’s resilience. The ADP Employment Change report showed that private sector job growth remained mitigated, reinforcing the view of a still-tight labor market despite signs of moderation elsewhere. Meanwhile, Industrial Production edged lower by 0.1% MoM in October, missing expectations for a modest increase but not enough to derail confidence in the broader economic outlook.
In addition, US Consumer Confidence for December fell to 89.1 from 92.9 in the previous month, pointing to some softening in household sentiment amid elevated interest rates and persistent inflation concerns.
Taken together, these releases have helped the US Dollar stabilize after recent weakness, prompting AUD/USD to retreat modestly from its intraday and three-month highs.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.13% | -0.22% | -0.38% | -0.24% | -0.38% | -0.52% | -0.18% | |
| EUR | 0.13% | -0.09% | -0.26% | -0.10% | -0.25% | -0.39% | -0.05% | |
| GBP | 0.22% | 0.09% | -0.17% | -0.02% | -0.16% | -0.30% | 0.05% | |
| JPY | 0.38% | 0.26% | 0.17% | 0.14% | 0.02% | -0.17% | 0.23% | |
| CAD | 0.24% | 0.10% | 0.02% | -0.14% | -0.12% | -0.29% | 0.08% | |
| AUD | 0.38% | 0.25% | 0.16% | -0.02% | 0.12% | -0.14% | 0.18% | |
| NZD | 0.52% | 0.39% | 0.30% | 0.17% | 0.29% | 0.14% | 0.35% | |
| CHF | 0.18% | 0.05% | -0.05% | -0.23% | -0.08% | -0.18% | -0.35% |
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 Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
- EUR/USD eases after failing to sustain a move above 1.1800.
- Strong US Q3 GDP and inflation data support the US Dollar.
- Traders await US Consumer Confidence for fresh direction.
The Euro (EUR) holds steady against the US Dollar (USD) on Tuesday as traders digest a mixed slate of US economic data. At the time of writing, EUR/USD trades around 1.1773, retreating after touching an intraday high near 1.1802.
The US Bureau of Economic Analysis published the preliminary estimate of third-quarter Gross Domestic Product (GDP), which had been postponed due to the recent government shutdown. The report showed the US economy expanded at an annualized pace of 4.3% in Q3, stronger than both the previous estimate of 3.8% and the market expectation of 3.3%.
The GDP Price Index rose 3.7% in Q3, exceeding the market forecast of 2.7% and the previous reading of 2.1%.
Inflation data tied to consumer spending also remained firm in the third quarter. Core Personal Consumption Expenditures rose 2.9% in Q3, matching market expectations and accelerating from the previous 2.6% reading. Meanwhile, Personal Consumption Expenditures Prices increased 2.8%, in line with forecasts but above the prior 2.1% figure, underscoring persistent underlying price pressure in the US economy.
Elsewhere on the US data front, Durable Goods Orders pointed to softer momentum in October. Headline orders fell 2.2%, a sharper decline than the 1.5% drop expected by markets and a reversal from the prior 0.7% increase. Orders excluding defense declined 1.5%, compared with the previous 0.1% rise.
Durable Goods Orders excluding transportation rose 0.2%, falling short of the 0.3% forecast and slowing from the prior 0.7% increase.
Industrial Production slipped 0.1% MoM in October, undershooting expectations for a 0.1% increase and easing from the previous 0.1% gain.
Following the data releases, the US Dollar regained some footing. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 98.10, recovering modestly after dipping to an intraday low near 97.85.
Looking ahead, traders now await the release of US Consumer Confidence for December later in the American session, which will be in the spotlight given the recent downtick in sentiment indicators and could influence near-term price action in EUR/USD.
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact 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 when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
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