US Dollar Ends Week Near Four-Month Low Amid Risk Aversion and Economic Uncertainty
The US Dollar (USD) concluded the week near a four-month low of around 97.80, reflecting a weak tone in financial markets due to escalated concerns over US President Donald Trump’s threat to impose 10% tariffs on eight European countries. These tensions were partially alleviated when Trump, along with NATO Secretary General Mark Rutte, announced a framework for a future deal regarding Greenland on Wednesday. Additionally, the US released its updated Gross Domestic Product (GDP) data for the third quarter, revising the annualized growth rate to 4.4%, up from the previous estimate of 4.3%.
The Personal Consumption Expenditures (PCE) Price Index data for October and November also indicated that annual inflation rose to 2.8% in November, up from 2.7% in October. Furthermore, the core PCE Price Index increased by 2.8% in November, meeting market expectations. The DXY is trading near the 97.80 weekly low, reaching a multi-week low after lower-than-expected US January preliminary S&P Global Purchasing Managers Indexes (PMIs), which printed 51.9 for Manufacturing and 52.5 for Services.
US Dollar Price Today
The table below shows the percentage change of the US Dollar (USD) against listed major currencies today. The US Dollar was the strongest against the Euro. The heat map illustrates percentage changes of major currencies against each other, with the base currency picked from the left column and the quote currency from the top row.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.43% | -0.87% | -1.53% | -0.59% | -0.70% | -0.49% | -0.63% | |
| EUR | 0.43% | -0.44% | -1.14% | -0.16% | -0.27% | -0.06% | -0.20% | |
| GBP | 0.87% | 0.44% | -0.70% | 0.29% | 0.18% | 0.39% | 0.24% | |
| JPY | 1.53% | 1.14% | 0.70% | 1.02% | 0.90% | 1.10% | 0.96% | |
| CAD | 0.59% | 0.16% | -0.29% | -1.02% | -0.12% | 0.09% | -0.04% | |
| AUD | 0.70% | 0.27% | -0.18% | -0.90% | 0.12% | 0.21% | 0.08% | |
| NZD | 0.49% | 0.06% | -0.39% | -1.10% | -0.09% | -0.21% | -0.14% | |
| CHF | 0.63% | 0.20% | -0.24% | -0.96% | 0.04% | -0.08% | 0.14% |
The EUR/USD pair is influenced by the preliminary estimates of the Eurozone Hamburg Commercial Bank (HCOB) Purchasing Managers’ Indexes (PMIs), which showed mixed results. The Manufacturing Index improved to 49.4 from 48.8 in December, while the Services PMI was 51.9, down from 52.4. The Composite PMI held at 51.5, slightly below the 51.6 anticipated.
GBP/USD is trading near the 1.3600 price region, a level it hadn’t reached since September 2025, after UK Retail Sales rose 0.4% MoM in December, exceeding estimates for a 0.1% decline. The S&P Global Services and Composite PMIs fared better in January than the December print, with Services output rising from 51.4 to 54.3, the Manufacturing PMI resulting at 51.6 from 50.6, and the Composite PMI rising from 51.4 to 53.9.
Currency Market Developments and Future Outlook
USD/JPY is trading near a two-week low at 156.00 after the Bank of Japan (BoJ) decided to keep its policy settings unchanged at its first policy meeting of the year. AUD/USD is trading close to 0.6880, reaching a level it hadn’t touched since September 2024, as the commodity-heavy currency surges amid record-highs in Gold, which is trading at a record high of $4,988 due to geopolitical tensions.
Anticipating Economic Perspectives: Voices on the Horizon
Upcoming events include speeches by European Central Bank (ECB) officials, such as Joachim Nagel, Christine Lagarde, Frank Elderson, Isabel Schnabel, and Piero Cipollone. Additionally, Federal Reserve (Fed) officials Alberto Musalem and Michelle Bowman will speak after the Fed’s monetary policy announcement.
Central Banks: Upcoming Meetings/Releases to Shape Monetary Policies
Key releases include the ADP Employment Change 4-week average, Bank of Japan monetary policy minutes, Australian Consumer Price Index (CPI) for December, Bank of Canada (BoC) interest rate decision, and the Fed’s Interest rate decision. Other notable releases include Japan’s Tokyo CPI, Retail Trade, and Unemployment data, US Initial Jobless Claims, Nonfarm Productivity for Q3, Germany and Eurozone Q4 flash GDP, and unemployment rates, as well as China’s NBS Manufacturing and Non-Manufacturing Purchasing Managers Index (PMI).
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