Forex News
- EUR/USD resumes its recovery and approaches the 1.1700 area.
- Eurozone Sentix data has shown a significant improvement in investors' confidence
- Concerns about the Fed's independence are hammering confidence in the US Dollar.
EUR/USD is trading near 1.1690 at the time of writing, 0.4% higher on daily charts after bouncing from one-month lows at the 1.1620 area earlier on the day. An upbeat Eurozone Sentix Consumer Sentiment Index and a weak US Dollar (USD) amid renewed attacks from the US government against the Federal Reserve Chairman Jerome Powell have been underpinning demand for the Euro (EUR) on Monday.
The New York Times has reported on Sunday that Powell is under criminal investigation for his testimony before the Senate Committee regarding renovations to a Federal Reserve building. Powell has responded with a video, stating that the investigation is “unprecedented” and framing it as a series of threats aimed at bending the central bank's arm into lowering interest rates.
Apart from that, violence has escalated in Iran, where the regime is reported to have killed hundreds of protesters this weekend, with the Threat of a US intervention looming.
The economic calendar is thin on Monday, but in this context, the speech from Atlanta Fed President Raphael Bostic will be observed with particular interest. Later this week, the release of the US Consumer Price Index (CPI) data, due on Tuesday, and a slew of speeches from Fed Officials might shed more light on the Fed's interest rate-cut path.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.40% | -0.46% | -0.02% | -0.27% | -0.31% | -0.49% | -0.41% | |
| EUR | 0.40% | -0.05% | 0.39% | 0.13% | 0.10% | -0.08% | -0.01% | |
| GBP | 0.46% | 0.05% | 0.45% | 0.19% | 0.16% | -0.03% | 0.04% | |
| JPY | 0.02% | -0.39% | -0.45% | -0.26% | -0.29% | -0.48% | -0.40% | |
| CAD | 0.27% | -0.13% | -0.19% | 0.26% | -0.03% | -0.22% | -0.14% | |
| AUD | 0.31% | -0.10% | -0.16% | 0.29% | 0.03% | -0.19% | -0.12% | |
| NZD | 0.49% | 0.08% | 0.03% | 0.48% | 0.22% | 0.19% | 0.07% | |
| CHF | 0.41% | 0.00% | -0.04% | 0.40% | 0.14% | 0.12% | -0.07% |
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 US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Daily Digest Market Movers: US Dollar remains vulnerable with Fed's independence into question
- The criminal probe against Fed Chairman Powell marks a new stage in the unprecedented political pressures on the central bank and a message to the next Fed chair. This undermines the central bank's independence to set its monetary policy and erodes the US Dollar's status as a reserve currency.
- Meanwhile, tensions in Iran continue growing. News reported that the Islamic regime's response to the protests in the country has caused hundreds of deaths, and Tehran has threatened to target US military bases if they detect signs of an impending attack.
- On the macroeconomic front, the Eurozone's Sentix Economic Confidence Index has improved to a reading of -1.8 in January from -6.2 in December. This is the best performance in the last six months and marks a significant improvement in investors' sentiment about the region's economy. The impact on the Euro (EUR), however, has been marginal.
- US data released on Friday revealed that the US labour market remains stalled but not deteriorating further. The jobless rate declined beyond expectations, adding to the case that the Fed will keep interest rates unchanged at its next monetary policy meeting, due on January 27 and 28.
- Beyond that, January's preliminary Michigan Consumer Sentiment Index rose to 54.0, from 52.9 in December, beyond the 53.5 reading expected by the market. These figures show the second consecutive improvement, which points to a stronger economic outlook and supports the idea of a steady monetary policy at January's Fed meeting.
Technical Analysis: EUR/USD recovery is likely to be tested at the 1.1700 area
EUR/USD has bounced up strongly from one-month lows at the 1.1620 area. The pair remains trading within a descending channel from late-December highs, but technical indicators on the 4-hour chart have turned higher.
The Moving Average Convergence Divergence (MACD) line has crossed above the signal line, hinting at a fading bearish pressure, while the Relative Strength Index (RSI) has breached the key 50 level, signaling some momentum improvement.
On the upside, the pair is likely to find significant resistance at the confluence of the channel's top with the January 7 high, near 1.1700. Above here, the target is the January 6 high, at 1.1742. To the downside, the pair has a significant support above 1.1615 (December 8 and 9 lows) ahead of the December 2 low, near 1.1590.
(The technical analysis of this story was written with the help of an AI tool.)
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Outlook for USD is neutral now; it is likely to trade between 6.9660 and 7.0160, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Outlook for USD/CNH remains neutral for now
24-HOUR VIEW: "We expected USD to 'trade in a range between 6.9740 and 6.9900' last Friday. USD subsequently traded between 6.9721 and 6.9841, closing largely unchanged (6.9777, -0.07%). The underlying tone has softened somewhat, but this is likely to lead to USD trading range of 6.9700/6.9860 rather than a continued decline."
1-3 WEEKS VIEW: "Last Thursday (08 Jan, spot at 6.9900), we highlighted 'the outlook for USD is neutral now', and we expected it to 'trade between 6.9660 and 7.0160'. Our view remains unchanged."
- USD/CAD reversal from 1.3915 highs holds above 1.3860.
- The Canadian Dollar is failing to draw significant support from the US Dollar's weakness.
- A moderate pullback in Oil prices is adding pressure on the Loonie.
The US Dollar is trading lower across the board, weighed by fresh concerns about the US Federal Reserve’s (Fed) independence. The USD/CAD reversal, however, has remained limited, with downside attempts held above 1.3860 so far, which keeps the bullish trend from December lows intact.
A New York Times report stating that the US Government initiated a criminal probe against Fed President Jerome Powell resurfaced concerns about the ability of the US central bank to act independently, and sent the US Dollar lower against its main peers during Monday's Asian session.
Fed president Jerome Powell echoed those worries in a video statement released shortly after the news, where he observed that these actions are “unprecedented” and a part of a broader US government campaign aimed at bending the central bank’s arm into lowering borrowing costs.
Oil prices remain close to long-term lows
A mild pullback in Oil prices is also weighing on the Canadian Dollar’s recovery. The US benchmark WTI Oil dropped about $1 to $58.60 from session highs at $59.60 earlier on the day. Crude prices, Canada’s main export, have appreciated about 2% from January 1 but remain 23% below their June 2025 peak.
On the macroeconomic front, US data was fairly positive on Friday. The unemployment rate dropped beyond expectations, while the Michigan Consumer Sentiment Index improved, easing pressure on the Fed to cut interest rates immediately.
In Canada, December’s employment data was mixed. Net employment increased by 8,2K against expectations of a 5K decline, but the jobless rate rose to 6.8% from 6.5% surpassing the market consensus of a milder rise, to 6.6%.
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
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Markets await the announcement of the next Federal Reserve Chair, with limited USD impact so far as the FOMC is expected to provide balance against a potentially dovish appointee. While Fed credibility concerns may exert some downside pressure on the dollar, EUR/USD is likely to face resistance near 1.18, with choppy trading expected in the months ahead, Rabobank's FX analyst Jane Foley reports.
FOMC balance may temper dovish risks
"Last week, US Treasury Secretary Bessent indicated that the next Fed Chair will be announced this month. While the issue of Fed independence is of considerable concern to the markets, to date the impact on the USD has been limited by the view that the FOMC may be able to provide some degree of balance against a dovish chair. This outlook has found support in the fact that FOMC members have recently expressed a wide range of policy views."
"Also, since all the candidates that have been mooted for the job of the next Fed Chair have credibility as potential monetary policy makers, many commentators have maintained the view that evidence and economics will in any case continue to dominate the decisions of the Fed going forward. Others have argued that while the Fed may tolerate slightly higher inflationary pressures going forward, this will not translate to a complete loss of credibility for the central bank."
"In short, there is a spread of potential outcomes regarding the Fed credibility issue which may imply the potential for some downside pressure on the USD without sending it into free-fall. As the market awaits further clarity on the evolution of the Fed, we expect that EUR/USD1.18 is likely to pose as tough resistance. Overall, we expect the outlook for the currency pair in the months ahead to be dominated by choppy ranges."
Strong momentum indicates further US Dollar (USD) strength; deeply overbought conditions suggest that 158.90 is likely out of reach today. In the longer run, USD is likely to continue to rise; the level to watch is 158.90, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD/JPY is likely to continue to rise
24-HOUR VIEW: "When USD was at 156.85 in the early Asian trade yesterday, we noted 'a tentative increase in upward momentum'. We expected USD to 'drift higher” but we pointed out that “any advance is likely part of a higher range of 156.55/157.20'. The subsequent price movements did not turn out as expected. USD lifted off, broke above 157.20 and surged to a high of 158.18. Strong momentum indicates further USD strength, but deeply overbought conditions suggest that 158.90 is likely out of reach today. Any pullback today is likely to remain above 157.40, with minor support at 157.75."
1-3 WEEKS VIEW: "In our most recent narrative from last Wednesday (06 Jan, spot at 156.70), we highlighted that USD 'is likely to trade in a range for now between 155.60 and 157.50'. Last Friday, in a sudden move, not only did USD break above 157.50, but it also soared to a high of 158.18. With rapidly increasing upward momentum, USD is likely to continue to rise. The level to watch is last year’s high, near 158.90. We will remain positive on USD as long as it holds above the ‘strong support’ level, currently at 157.00."
- Gold prints a fresh record at $4,601.32 before consolidating below the $4,600 psychological area
- Technical indicators remain skewed to the upside, despite clear overbought signals in the short term.
- Key support levels around $4,550 and $4,500 will determine whether the bullish momentum can extend.
Gold (XAU/USD) trades around $4,580 on Monday at the time of writing, up 1.60% on the day. The precious metal reached a new all-time high at $4,601.32 earlier in the day, extending a particularly strong bullish trend seen over recent weeks.
From a macroeconomic perspective, the backdrop remains broadly supportive for Gold, although this aspect has taken a back seat. Persistent geopolitical tensions, concerns surrounding the independence of the Federal Reserve (Fed), and a weaker US Dollar (USD) continue to underpin demand for safe-haven assets. That said, slightly stronger-than-expected US labor data have tempered expectations of aggressive monetary easing in 2026, marginally limiting the metal’s fundamental upside.
Technical Analysis
In the 4-hour chart, XAU/USD trades at $4,584.50. The 50-period Simple Moving Average (SMA) rises above the 100-period one, signaling sustained bullish momentum. Both SMAs trend higher, and price holds above them, with the 50 SMA at $4,431.11 offering nearby dynamic support. The 14-period RSI sits at 73.77 (overbought), indicating stretched momentum that could prompt a pause. Immediate resistance stands at $4,601.32, while support aligns at $4,550.
The rising trend line from $4,274.47 underpins the bullish bias, offering a secondary floor near $4,470.87. Additional support is seen at $4,500, which would be tested on pullbacks if momentum cools. A sustained hold above the cited supports would keep the near-term tone positive, while a rejection near the overhead barrier would tilt price action into consolidation.
(The technical analysis of this story was written with the help of an AI tool.)
The Federal Reserve (Fed) has received grand jury subpoenas from the Justice Department regarding Jerome Powell’s June congressional testimony about renovations at the Fed’s headquarters, ABN AMRO's Senior Economist Rogier Quaedvlieg reports.
Powell defends Fed independence amid political probe
"Last year, it became apparent that the Trump administration viewed these renovations as a potential way to challenge Chair Powell. In a video statement last night, Powell emphasized that 'the threat (…) is a consequence of the Federal Reserve setting interest rates based on our assessment of what will serve the public, rather than following the preferences of the President'. Meanwhile, Trump denied any knowledge of the investigation. A subpoena marks the beginning of an evidence-gathering process. This is an investigation, which may conclude without charges. If an indictment does occur, it will likely follow the precedent set by the Lisa Cook case, likely reaching the Supreme Court and taking considerable time."
"Attorney General Pam Bondi has instructed various offices to investigate possible taxpayer abuse. The Fed’s renovation costs have increased from $1.9 billion in 2023 to $2.5 billion. In his June testimony, Powell attributed the overruns to higher costs for materials, equipment, and labour, as well as unforeseen issues like toxic contamination. They are not due to claimed extravagant features, like say, a golden ballroom. Overall, the charges appear highly political, and it seems unlikely that this investigation will find any damning evidence. Powell has responded forcefully, calling the subpoena what it is. The timing suggests this may relate to his potential continued presence on the Fed’s board of governors after his term as Chair, which is crucial for Trump’s influence over the board. This situation increases pressure on Powell to step down."
"If anything, this challenge to the Fed’s independence could prompt the FOMC to take a slightly more hawkish stance to defend the institution. The latest labour market report can reasonably supports holding rates steady for now. Our base case remains a pause in January, followed by quarterly 25 basis point cuts starting in March. However, if the situation drags on, rate cuts may be delayed."
- The Pound Sterling bounces back against the US Dollar to around 1.3465 as the US DoJ imposes criminal charges on Fed’s Powell.
- Investors await the UK employment and the US inflation data, to be released on Tuesday.
- Fed’s Bostic stresses the need to bring inflation under control.
The Pound Sterling (GBP) recovers strongly to around 1.3465 against the US Dollar (USD) during the European trading session on Monday after a weak opening around 1.3390. The GBP/USD pair bounces back as the US Dollar corrects sharply, following the opening of a criminal investigation on Federal Reserve (Fed) Chair Jerome Powell over mismanaging funds in the reconstruction of Washington’s headquarters.
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.3% lower near 98.80. The DXY has retraced after revisiting the monthly high near 99.25.
Over the weekend, the United States (US) Department of Justice sent a subpoena to the Fed for Jerome Powell, which directs an inquiry into his statements during his testimony at the Senate in June 2025 and an examination of his spending records.
In response, Fed’s Powell has also stated that the “new threat is not about his testimony or the renovation project but a pretext”. Powell added that the threat of criminal charges is a “consequence of the Fed setting interest rates based on its assessment of the public interest rather than the president's preferences”.
Market experts believe that criminal charges against Fed’s Powell have escalated his feud with US President Donald Trump, who has criticized him several times since his return to the White House for not lowering interest rates. This could lead to a serious dent in the Fed's autonomy, an unfavorable situation for the US Dollar.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.47% | -0.39% | -0.03% | -0.24% | -0.27% | -0.39% | -0.56% | |
| EUR | 0.47% | 0.08% | 0.44% | 0.22% | 0.20% | 0.08% | -0.09% | |
| GBP | 0.39% | -0.08% | 0.34% | 0.14% | 0.12% | -0.00% | -0.17% | |
| JPY | 0.03% | -0.44% | -0.34% | -0.21% | -0.24% | -0.36% | -0.52% | |
| CAD | 0.24% | -0.22% | -0.14% | 0.21% | -0.02% | -0.14% | -0.31% | |
| AUD | 0.27% | -0.20% | -0.12% | 0.24% | 0.02% | -0.12% | -0.30% | |
| NZD | 0.39% | -0.08% | 0.00% | 0.36% | 0.14% | 0.12% | -0.17% | |
| CHF | 0.56% | 0.09% | 0.17% | 0.52% | 0.31% | 0.30% | 0.17% |
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).
Daily Digest Market Movers: Fed's Bostic warns of inflation risks
- Looking at the United Kingdom, the Pound Sterling is expected to be driven by the UK employment data for the three months ending in November this week, which will be released on Tuesday. Investors will pay close attention to the UK labor market data to get fresh cues on the Bank of England’s (BoE) monetary policy outlook.
- In 2025, UK labor market concerns remain elevated as firms avoid aggressive hiring to offset the impact of higher employers’ contributions to social security schemes.
- Meanwhile, the monthly survey by the Recruitment and Employment Confederation (REC) trade body and accountants KPMG showed earlier in the day that labor demand remained soft while wage growth accelerated in December.
- In the US, the Nonfarm Payrolls (NFP) report for December showed on Friday that the Unemployment Rate dropped sharply to 4.4% from 4.6% in November. However, hiring was lower at 50K against estimates of 60K and the prior reading of 56K.
- Going forward, the next major trigger for the US Dollar will be the release of the Consumer Price Index (CPI) data on Tuesday. Investors will closely monitor the US inflation data for fresh cues on the interest rate outlook.
- In 2025, the Fed delivered three interest rate cuts of 25 basis points (bps) in an attempt to contain labor market woes, even as inflation had remained well above the 2% target for a long period.
- On Friday, Atlanta Fed President Raphael Bostic said in an interview with radio station WLRN that inflation is “too high” and that the Fed needs to get it “under control”.
Technical Analysis: GBP/USD attracts bids below 20-day EMA
GBP/USD trades higher, at around 1.3465 at the time of writing. The 20-day Exponential Moving Average (EMA) rises and sits at 1.3438, with price holding just above it, which supports a bullish tone.
The 14-day Relative Strength Index (RSI) at 53 (neutral) has turned higher, confirming steady momentum.
Measured from the 1.3794 high to the 1.3014 low, the 61.8% retracement at 1.3496 acts as immediate resistance . A decisive break above it would signal that the bearish downtrend is losing strength and could open further upside towards the September 17 high at 1.3726.
Conversely, failure to clear 1.3496 would keep the pair contained, with a drift back toward the 50% retracement at 1.3404 dampening momentum and maintaining the rebound within a tight range.
(The technical analysis of this story was written with the help of an AI tool.)
Economic Indicator
Consumer Price Index (YoY)
Inflationary or deflationary tendencies are measured by periodically summing the prices of a basket of representative goods and services and presenting the data as The Consumer Price Index (CPI). CPI data is compiled on a monthly basis and released by the US Department of Labor Statistics. The YoY reading compares the prices of goods in the reference month to the same month a year earlier.The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
Read more.Next release: Tue Jan 13, 2026 13:30
Frequency: Monthly
Consensus: 2.7%
Previous: 2.7%
Source: US Bureau of Labor Statistics
The US Federal Reserve (Fed) has a dual mandate of maintaining price stability and maximum employment. According to such mandate, inflation should be at around 2% YoY and has become the weakest pillar of the central bank’s directive ever since the world suffered a pandemic, which extends to these days. Price pressures keep rising amid supply-chain issues and bottlenecks, with the Consumer Price Index (CPI) hanging at multi-decade highs. The Fed has already taken measures to tame inflation and is expected to maintain an aggressive stance in the foreseeable future.
- AUD/USD returns to levels right above 0.6700 after bouncing from 0.6660 lows.
- A fresh rift between Trump and Powell has put the Fed's independence into focus.
- Recent price action highlights a potential bearish H&S formation.
The Australian Dollar is posting a significant recovery against the US Dollar on Monday. The pair has returned to levels above 0.6700 during the European session, after bouncing near 0.6670, as renewed political pressure on the US Federal Reserve (Fed) has sent the Greenback tumbling against its main peers.
The New York Times reported on Sunday that the US government initiated a criminal investigation into Federal Reserve Chair Jerome Powell, which was described as “unprecedented action” and the latest in a series of attempts to intimidate the US central bank. The news has brought the question Fed’s independence back to the table, and might erode investors’ confidence in the US Dollar as a reserve currency.
Technical Analysis: A bearish H&S might be in progress
The 4-hour chart shows AUD/USD trading at 0.6711 amid an improving bullish momentum. The Relative Strength Index (14) is at 55, showing a mild bullish trend, and the Moving Average Convergence Divergence (MACD) line has crossed over the Signal line, highlighting an improving momentum.
The pair is approaching a key resistance at the 0.6730 area, where the reverse trendline might challenge bulls. Failure here would add pressure towards 0.6660 (December 31, January 5 low), which is the neckline of a bearish Head & Shoulders pattern. Further down, the 0.6595 area (December 18 low) comes into focus.
A confirmation above 0.6730, on the contrary, would clear the path for a retest of the three-month high, at 0.6770, hit last week.
(The technical analysis of this story was written with the help of an AI tool.)
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 Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.40% | -0.42% | -0.02% | -0.27% | -0.30% | -0.48% | -0.45% | |
| EUR | 0.40% | -0.01% | 0.39% | 0.12% | 0.10% | -0.08% | -0.05% | |
| GBP | 0.42% | 0.01% | 0.40% | 0.14% | 0.12% | -0.06% | -0.03% | |
| JPY | 0.02% | -0.39% | -0.40% | -0.25% | -0.27% | -0.45% | -0.42% | |
| CAD | 0.27% | -0.12% | -0.14% | 0.25% | -0.02% | -0.20% | -0.17% | |
| AUD | 0.30% | -0.10% | -0.12% | 0.27% | 0.02% | -0.19% | -0.15% | |
| NZD | 0.48% | 0.08% | 0.06% | 0.45% | 0.20% | 0.19% | 0.03% | |
| CHF | 0.45% | 0.05% | 0.03% | 0.42% | 0.17% | 0.15% | -0.03% |
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).
- USD/JPY clings to gains near the yearly high around 158.20 amid criminal charges against Fed’s Powell.
- Fed’s Powell has been charged with mismanaging funds utilized for the Washington headquarters’ renovation.
- Japan’s PM Takaichi could announce a snap election early in February.
The USD/JPY pair trades firmly to its yearly high near 158.20 during the European trading session on Monday. The pair remains broadly firm while both the US Dollar (USD) and the Japanese Yen (JPY) are underperforming during the day.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.40% | -0.42% | -0.09% | -0.28% | -0.30% | -0.48% | -0.45% | |
| EUR | 0.40% | -0.02% | 0.39% | 0.14% | 0.11% | -0.06% | -0.04% | |
| GBP | 0.42% | 0.02% | 0.40% | 0.15% | 0.14% | -0.03% | -0.03% | |
| JPY | 0.09% | -0.39% | -0.40% | -0.25% | -0.27% | -0.45% | -0.42% | |
| CAD | 0.28% | -0.14% | -0.15% | 0.25% | -0.02% | -0.20% | -0.16% | |
| AUD | 0.30% | -0.11% | -0.14% | 0.27% | 0.02% | -0.19% | -0.16% | |
| NZD | 0.48% | 0.06% | 0.03% | 0.45% | 0.20% | 0.19% | 0.03% | |
| CHF | 0.45% | 0.04% | 0.03% | 0.42% | 0.16% | 0.16% | -0.03% |
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).
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.4% lower to near 98.70. The DXY has corrected after revisiting the monthly high near 99.25.
The US Dollar is under pressure as United States (US) federal prosecutors have accused Federal Reserve (Fed) Chair Jerome Powell of cost overruns in the renovation of Washington’s headquarters. In response, Fed’s Powell has pushed back allegations, stating that these threats are not about his “testimony or the renovation project but a pretext”.
The event has renewed concerns over the Fed’s independence, a scenario that is unfavorable for the US Dollar.
On the economic front, investors await the US Consumer Price Index (CPI) data for December, which will be released on Tuesday.
Meanwhile, the Japanese Yen is also underperforming on expectations that Japan’s Prime Minister (PM) Sanae Takaichi could announce an early snap election. A report from Reuters has shown that Takaichi could call for a snap election on February 8 or 15.
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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