- The US Dollar Index could struggle due to the increased likelihood that the Fed will cut interest rates twice this year.
- US retail sales rose 0.4% month-on-month in December, missing market expectations for a 0.6% increase.
- US Treasury yields are expected to post a weekly decline of more than 3%.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, halts its four-day losing streak, trading near 109.10 during Asian hours on Friday. However, the dollar ran into difficulties as weaker US retail sales and persistent inflation data reinforced market expectations that the Fed will cut interest rates twice this year.
US retail sales increased 0.4% month-on-month in December, reaching $729.2 billion. This reading was weaker than market expectations of a 0.6% increase and lower than the previous reading of a 0.8% increase (revised from 0.7%).
The US core Consumer Price Index (CPI), which excludes volatile food and energy prices, rose 3.2% year-on-year in December, slightly below the previous month’s 3.3% rise and forecasts from the 3.3% market. On a monthly basis, the core CPI rose 0.2%, compared to a 0.3% increase in the previous month.
Growing dovish sentiment around the Fed led to a drop in US Treasury yields, with the 2-year and 10-year notes now at 4.23% and 4.60%, respectively. Both yields are set to see a weekly decline of more than 3%.
Federal Reserve Bank of Chicago President Austan Goolsbee said Thursday that he has become increasingly confident in recent months that the labor market is stabilizing at a level that resembles full employment, rather than deteriorate into something worse, according to Reuters.
US Dollar PRICE Today
The table below shows the percentage change of the US Dollar (USD) against major currencies today. US dollar was the strongest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.09% | 0.16% | 0.26% | 0.06% | 0.17% | 0.32% | 0.08% | |
| EUR | -0.09% | 0.07% | 0.21% | -0.03% | 0.07% | 0.24% | -0.01% | |
| GBP | -0.16% | -0.07% | 0.11% | -0.10% | 0.00% | 0.16% | -0.08% | |
| JPY | -0.26% | -0.21% | -0.11% | -0.20% | -0.10% | 0.05% | -0.20% | |
| CAD | -0.06% | 0.03% | 0.10% | 0.20% | 0.10% | 0.26% | -0.00% | |
| AUD | -0.17% | -0.07% | -0.01% | 0.10% | -0.10% | 0.16% | -0.09% | |
| NZD | -0.32% | -0.24% | -0.16% | -0.05% | -0.26% | -0.16% | -0.25% | |
| CHF | -0.08% | 0.01% | 0.08% | 0.20% | 0.00% | 0.09% | 0.25% |
The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the box will represent USD (base)/JPY (quote).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
