Forex Today: US Dollar strength returns as Trump pressures Fed, Warsh signals policy rethink
Here is what you need to know for Wednesday, April 22:
The US Dollar Index (DXY) surged near the 98.40 area, even as Treasury yields edge lower and safe-haven demand fades slightly amid a fragile geopolitical backdrop.
At the same time, political pressure on monetary policy is back in focus. United States (US) President Donald Trump openly called for lower interest rates, stating in an interview with CNBC that he would be “disappointed” if Federal Reserve (Fed) chair nominee Kevin Warsh did not cut rates “right away” after taking office as the next Fed chair.
Warsh, for his part, acknowledged that “all presidents” tend to favor lower rates but stressed that the independence of the Fed ultimately depends on the institution itself. He downplayed inflation risks tied to tariffs, arguing that price pressures have “improved somewhat,” and suggested that a smaller balance sheet could allow for lower rates, better inflation dynamics, and stronger economic growth.
He also pushed back against current Fed communication practices, noting he does not believe in forward guidance and criticizing the number of policymakers signaling rate paths in advance. Warsh called for structural changes at the Fed, including new tools, revamped communication strategies, and a revised inflation framework, arguing that existing data used to assess inflation is “quite imperfect.”
The US Dollar Index (DXY) is stepping back from an early surge amid rising yields and rate-cut expectations, though downside remains limited by lingering risk aversion.
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 Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.47% | 0.32% | 0.40% | 0.13% | 0.44% | 0.07% | 0.37% | |
| EUR | -0.47% | -0.14% | -0.07% | -0.34% | -0.04% | -0.40% | -0.09% | |
| GBP | -0.32% | 0.14% | 0.09% | -0.17% | 0.10% | -0.25% | 0.06% | |
| JPY | -0.40% | 0.07% | -0.09% | -0.25% | 0.04% | -0.36% | -0.03% | |
| CAD | -0.13% | 0.34% | 0.17% | 0.25% | 0.29% | -0.10% | 0.21% | |
| AUD | -0.44% | 0.04% | -0.10% | -0.04% | -0.29% | -0.39% | -0.06% | |
| NZD | -0.07% | 0.40% | 0.25% | 0.36% | 0.10% | 0.39% | 0.32% | |
| CHF | -0.37% | 0.09% | -0.06% | 0.03% | -0.21% | 0.06% | -0.32% |
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 fell toward the 1.1740 zone, constrained by mixed Eurozone data and fragile risk conditions.
GBP/USD is also free-falling near 1.3490 as markets reassess risk exposure. In the three months ending February, the ILO Unemployment Rate printed at 4.9%, easing from the previous 5.2% and also below market expectations
USD/JPY is climbing toward the 159.40 area, with the Japanese Yen finding support from lower US yields and residual safe-haven demand amid geopolitical uncertainty.
AUD/USD is trading on the back foot around the 0.7150 region as the US Dollar (USD) trades broadly stronger. Investors now look ahead to the Australian PMIs data for further direction.
West Texas Intermediate (WTI) Oil is stabilizing near recent range highs near 89.65 as ongoing uncertainty over the Strait of Hormuz and supply risks keep prices supported despite no fresh escalation.
Gold (XAU/USD) is losing ground around the $4,700 region, pressured by mild easing in safe-haven demand and shifting rate expectations, although geopolitical risks continue to provide a floor.
What’s next in the docket:
Wednesday, April 22:
- United Kingdom Inflation Data March
- Eurozone Consumer Confidence April Prel
- Australia S&P Global PMIs April Prel
Thursday, April 23:
- Eurozone ECB Non-Monetary Policy Meeting
- France HCOB PMIs April Prel
- Germany HCOB PMIs April Prel
- Eurozone HCOB PMIs April Prel
- United Kingdom S&P Global PMIs April Prel
- United States Initial Jobless Claims
- United States S&P Global PMIs April Prel
- United States New Home Sales March
- United Kingdom GfK Consumer Confidence April
- Japan Inflation Data March
Friday, April 24:
- United Kingdom Retail Sales March
- Germany IFO Survey April
- Canada Retail Sales February
- United States Michigan Data April
- United States Inflation Expectations April
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Author
Agustin Wazne
FXStreet
Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.
