United States Dollar Index approaches yearly peak on hawkish Fed outlook

Fonte Fxstreet
  • The US Dollar Index approaches its year-to-date high as expectations of further Fed rate hikes support the Greenback.
  • Elevated Oil prices amid the Middle East conflict keep inflation risks tilted to the upside.
  • Traders now await US PCE inflation, ISM PMI and Nonfarm Payrolls for fresh clues on the Fed’s next move.

The US Dollar Index (DXY) extends gains on Tuesday, approaching its year-to-date high as expectations of further Federal Reserve (Fed) interest-rate hikes drive strong demand for the Greenback. At the time of writing, the DXY, which tracks the US Dollar’s value against a basket of six major currencies, trades around 101.40, up 0.20% on the day.

The Fed delivered a 25-basis-point (bps) rate hike earlier this month, lifting the federal funds target range to 3.75%-4.00%. The updated Summary of Economic Projections placed the median policy rate at 4.1% for this year, suggesting that officials expect to deliver one more increase.

The US central bank remains focused on inflation, which continues to run stubbornly above its 2% target. Its inflation fight is becoming increasingly challenging as the war in the Middle East keeps Oil prices elevated. The United States and Iran remain far apart on key issues, leaving shipping through the Strait of Hormuz disrupted.

Recent Fed communication also suggests that policymakers remain open to further monetary policy tightening. Fed Governor Michael Barr said on Tuesday that “inflation is a key concern” and that the central bank has been “knocked off course” from its 2% goal.

“I see us not getting to the 2% inflation target in a timely way unless we adjust our policy,” Barr said. He added that the labour market remains “solid,” supported by business investment and consumer spending.

Separately, New York Fed President John Williams said that he sees “no need for urgency” following September’s rate hike. However, he added that “if the economy meets expectations, one further hike is likely this year.” According to the CME FedWatch Tool, markets are pricing in around a 68% probability of another interest-rate increase at the Fed’s October meeting.

Expectations of higher US interest rates and heightened inflation risks have pushed Treasury yields to multi-year highs. The benchmark 10-year US Treasury yield climbs to around 5.28%, its highest level since 2007, while the rate-sensitive 2-year yield holds near 4.93%, levels last seen in 2024. Higher Treasury yields increase the appeal of US Dollar-denominated assets and provide additional support to the Greenback.

The US Dollar’s strength is visible across major currency pairs. The Euro falls to its lowest level since late June, with EUR/USD trading near 1.1340. The British Pound remains close to a three-month low, while the Canadian Dollar weakens to levels last seen in early July. The Japanese Yen holds relatively firm following renewed warnings that Japanese authorities could intervene in the currency market again.

Traders largely shrugged off weaker-than-expected second-tier US economic data released on Tuesday. JOLTS Job Openings fell to 7.079 million in August, below the market forecast of 7.23 million. The previous reading was revised higher to 7.335 million from 7.271 million.

The Conference Board Consumer Confidence Index also declined to 81.9 in September, missing expectations of 89.0. The August reading was revised lower to 88.6 from 89.4.

Attention now turns to the US Personal Consumption Expenditures (PCE) Price Index, ISM Manufacturing Purchasing Managers’ Index (PMI) and Nonfarm Payrolls (NFP) report later this week. Strong inflation or labour-market figures could reinforce expectations of further Fed tightening and push the US Dollar Index toward fresh yearly highs.

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 0.31% 0.21% -0.09% 0.07% 0.50% 0.48% 0.23%
EUR -0.31% -0.09% -0.37% -0.25% 0.20% 0.17% -0.09%
GBP -0.21% 0.09% -0.29% -0.13% 0.28% 0.26% 0.00%
JPY 0.09% 0.37% 0.29% 0.17% 0.59% 0.57% 0.31%
CAD -0.07% 0.25% 0.13% -0.17% 0.41% 0.40% 0.15%
AUD -0.50% -0.20% -0.28% -0.59% -0.41% -0.03% -0.28%
NZD -0.48% -0.17% -0.26% -0.57% -0.40% 0.03% -0.26%
CHF -0.23% 0.09% -0.00% -0.31% -0.15% 0.28% 0.26%

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).

Isenção de responsabilidade: Apenas para fins informativos. O desempenho passado não é indicativo de resultados futuros.
placeholder
Ações do Japão e da Coreia do Sul divergem: Nikkei 225 sobe quase 2%, Kospi cai 0,48% após queda de 18,8% no terceiro trimestreTradingKey - Em 30 de setembro, os mercados de ações do Japão e da Coreia do Sul divergiram, com as ações japonesas se fortalecendo significativamente, enquanto os papéis sul-coreanos registraram leve
Autor  TradingKey
13 horas atrás
TradingKey - Em 30 de setembro, os mercados de ações do Japão e da Coreia do Sul divergiram, com as ações japonesas se fortalecendo significativamente, enquanto os papéis sul-coreanos registraram leve
placeholder
Previsão do Preço do Ouro: PCE de Agosto dos EUA Iminente, o Preço do Ouro Vai Subir ou Cair no Curto Prazo?TradingKey - Na sessão europeia de 30 de setembro, os preços do ouro (XAUUSD) continuaram a se recuperar após uma forte queda no início desta semana, retomando o patamar de US$ 4.200 no intradiário, c
Autor  TradingKey
13 horas atrás
TradingKey - Na sessão europeia de 30 de setembro, os preços do ouro (XAUUSD) continuaram a se recuperar após uma forte queda no início desta semana, retomando o patamar de US$ 4.200 no intradiário, c
placeholder
Previsão do Preço do Ouro: Ouro despenca para a mínima de sete semanas, o suporte de US$ 4.100 vai resistir?TradingKey - O ouro à vista (XAUUSD) despencou 4% na segunda-feira, fechando a US$ 4.114,93 por onça-troy, após atingir a mínima intradia de US$ 4.110,80, seu menor nível desde 5 de agosto. No início
Autor  TradingKey
Ontem 09: 21
TradingKey - O ouro à vista (XAUUSD) despencou 4% na segunda-feira, fechando a US$ 4.114,93 por onça-troy, após atingir a mínima intradia de US$ 4.110,80, seu menor nível desde 5 de agosto. No início
placeholder
Ações japonesas e sul-coreanas fecham em queda; Nikkei 225 cai 0,6%, Kospi recua 0,27%, Samsung contraria tendência e sobe quase 1%TradingKey - Em 29 de setembro, os mercados acionários do Japão e da Coreia do Sul mantiveram-se fracos no pregão da tarde, com o aumento do sentimento de cautela no mercado. O índice Nikkei 225 do Ja
Autor  TradingKey
Ontem 09: 19
TradingKey - Em 29 de setembro, os mercados acionários do Japão e da Coreia do Sul mantiveram-se fracos no pregão da tarde, com o aumento do sentimento de cautela no mercado. O índice Nikkei 225 do Ja
placeholder
Ações do Japão e da Coreia do Sul recuam enquanto Kospi cai 2,7%, Samsung e SK Hynix caem mais de 5% e Kioxia recua mais de 4%TradingKey - Em 28 de setembro, os mercados de ações do Japão e da Coreia do Sul caíram em conjunto, com as perdas no mercado sul-coreano se ampliando significativamente. O índice KOSPI da Coreia do S
Autor  TradingKey
9 Mês 28 Dia Seg
TradingKey - Em 28 de setembro, os mercados de ações do Japão e da Coreia do Sul caíram em conjunto, com as perdas no mercado sul-coreano se ampliando significativamente. O índice KOSPI da Coreia do S
Produtos relacionados
goTop
quote