Forex Today: Trump slams Powell, US Dollar recovers from four-year lows
Here is what you need to know on Friday, January 30:
Financial markets were choppy on Thursday, with significant volatility during US trading hours. In the absence of other news, the focus was on United States (US) President Donald Trump, who said on Truth Social that the Federal Reserve (Fed) should substantially lower interest rates: “now! We should be paying lower interest rates than any other country in the world.” Trump took another jab at Fed’s Chairman Jerome Powell, calling him “too late Powell” and claiming he is hurting the US and its national security.
The Fed on Wednesday kept the fed fund rates unchanged, as widely expected, but Powell struck a less dovish tone, noting that “the US economy expanded at a solid pace last year and is coming into 2026 on a firm footing.” Powell added that job gains remain modest, unemployment is stabilizing, and inflation remains somewhat elevated.
Wall Street's slumped due to a sell-off in the tech sector, partially explaining the recent market movements, but not completely. Microsoft Corp. shares fell to their lowest in six-years after the company reported record spending in the last three months of 2025, spurring concerns it will take longer than expected for the company’s AI investments to pay off.
DXY: The US Dollar Index (DXY) is trading near the 96.20 level, recovering from four-year lows.
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | 0.02% | -0.23% | -0.33% | 0.03% | -0.22% | -0.36% | |
| EUR | 0.09% | 0.12% | -0.13% | -0.23% | 0.12% | -0.13% | -0.27% | |
| GBP | -0.02% | -0.12% | -0.23% | -0.35% | -0.01% | -0.26% | -0.38% | |
| JPY | 0.23% | 0.13% | 0.23% | -0.10% | 0.25% | -0.01% | -0.13% | |
| CAD | 0.33% | 0.23% | 0.35% | 0.10% | 0.36% | 0.10% | -0.03% | |
| AUD | -0.03% | -0.12% | 0.01% | -0.25% | -0.36% | -0.25% | -0.38% | |
| NZD | 0.22% | 0.13% | 0.26% | 0.01% | -0.10% | 0.25% | -0.14% | |
| CHF | 0.36% | 0.27% | 0.38% | 0.13% | 0.03% | 0.38% | 0.14% |
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).
AUD/USD is trading near the 0.7020 price zone, staying near three-year highs as the Australian Dollar (AUD) rocketed, with Gold reaching fresh all-time highs.
USD/JPY is trading near the 153.00 price region after the Bank of Japan (BoJ)’s committee shared the scenario of rising inflationary pressures, a weak Japanese Yen (JPY), and wage growth, which paves the path for further monetary tightening.
EUR/USD is trading near 1.1950, unchanged on a daily basis after posting a four-year high two days ago.
GBP/USD is trading near the 1.3790 price zone, as the Great British Pound (GBP) keeps itself above a weak USD.
Gold clings to its corrective pullback, trading near the $5,330 price zone after hitting a record high of $5,598 earlier in the Asian session.
What's next in the docket:
- Flash Germany Gross Domestic Product (GDP).
- Flash Eurozone GDP.
- Flash German CPI.
- US Producer Price Index (PPI).
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.
Artigos Recomendados
