Forex Today: DXY surges after softer US Jobless Claims
Here is what you need to know on Friday, February 27:
Initial Jobless Claims in the week ending February 21 came in at 212K, below economists' expectations of 215K but slightly above the previous reading of 208K. Continuing Claims also declined to 1.833 million, signaling stabilization in labor market conditions.
The United States (US) Dollar Index (DXY) is trading near the 97.90 level, recovering part of Wednesday's losses even after Federal Reserve (Fed) Governor Stephen Miran reaffirmed his dovish stance, indicating he is looking for 1% rate cuts this year. He added that “prices right now seem stable,” and he does not think the US has an inflation problem.
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 British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.09% | 0.50% | -0.14% | 0.02% | 0.16% | 0.23% | 0.16% | |
| EUR | -0.09% | 0.40% | -0.22% | -0.07% | 0.07% | 0.14% | 0.08% | |
| GBP | -0.50% | -0.40% | -0.61% | -0.47% | -0.34% | -0.26% | -0.33% | |
| JPY | 0.14% | 0.22% | 0.61% | 0.16% | 0.30% | 0.36% | 0.31% | |
| CAD | -0.02% | 0.07% | 0.47% | -0.16% | 0.14% | 0.21% | 0.14% | |
| AUD | -0.16% | -0.07% | 0.34% | -0.30% | -0.14% | 0.07% | 0.03% | |
| NZD | -0.23% | -0.14% | 0.26% | -0.36% | -0.21% | -0.07% | -0.06% | |
| CHF | -0.16% | -0.08% | 0.33% | -0.31% | -0.14% | -0.03% | 0.06% |
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).
EUR/USD is trading near the 1.1790 level, sliding from its intraday gains. Earlier this week, European Central Bank (ECB) President Christine Lagarde sounded confident but cautious, insisting inflation is still on track to return to 2% in the medium term, with food price pressures easing gradually into 2026.
GBP/USD is trading close to the 1.3480 level, with the Pound Sterling (GBP) declining almost 0.50% amid growing speculation that the Bank of England (BoE) will reduce rates in the March meeting, after Governor Andrew Bailey commented that a cut on that date is a “genuinely open question.”
AUD/USD is trading near 0.7100, trimming almost all its intraday losses but still in the red despite a stronger-than-expected inflation data in Australia, which spiked expectations that the Reserve Bank of Australia (RBA) could maintain a tighter policy stance, a tailwind for the Australian Dollar (AUD).
USD/JPY declines to around 156.20, staying in a neutral zone after a highly volatile day. Later, the February Tokyo Consumer Price Index (CPI) will be released, which will reshape the USD/JPY trajectory.
Gold is trading at $5,185, trading in a tight range zone with limited gains as geopolitical tensions remain elevated despite the start of the third round of talks between the US and Iran in Geneva.
What’s next in the docket:
Friday, February 27:
- Swiss Q4 GDP.
- Germany’s February flash CPI.
- Germany’s February flash HICP.
- Canadian Q4 GDP.
- 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.
Author
Agustin Wazne
FXStreet
Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.
