United States Dollar Index holds above 101.00 amid Fed rate hike bets, NFP in focus
- US Dollar steadies as traders weigh weaker US data against hawkish Fed expectations.
- Slow progress in US-Iran peace talks underpins safe-haven demand for the Greenback.
- Traders turn their attention to the US Nonfarm Payrolls report, due on Thursday.
The US Dollar Index (DXY) holds firm on Wednesday as traders digest weaker-than-expected US economic data and remarks from Federal Reserve (Fed) Chair Kevin Warsh.
The index, which tracks the Greenback against a basket of six major currencies, is trading around 101.38, just below the more than one-year high of 101.80 touched last week.
Speaking at the ECB Forum in Sintra on Wednesday, Warsh said, "We're not going to give forward guidance," adding, "We'll chart a new course so we can make better decisions." He also noted that "inflation risks have come down."
On the data front, the ADP Employment Change report showed that private payrolls increased by 98K in June, below market expectations of 113K and down from 122K in May. Meanwhile, the ISM Manufacturing Purchasing Managers Index (PMI) eased to 53.3 in June from 54 in May, missing market forecasts of 54.
The US Dollar initially came under modest selling pressure but recovered as Warsh reaffirmed the Fed's commitment to restoring price stability, reinforcing expectations that the US central bank could raise interest rates later this year.
According to the CME FedWatch Tool, markets are currently pricing in a 67% probability of a rate hike at the September meeting. Attention now turns to Thursday's US Nonfarm Payrolls (NFP) report for fresh clues on the labor market and the Fed's monetary policy outlook.
Meanwhile, the lack of progress toward a final US-Iran peace agreement continued to lend additional support to the safe-haven US Dollar. Indirect talks are underway in Doha, Qatar. Tehran has insisted that direct negotiations on a final agreement will not begin until Washington fulfills its commitments under the 60-day Memorandum of Understanding (MoU) reached last month.
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 | 0.36% | -0.12% | -0.03% | 0.11% | 0.29% | 0.06% | 0.03% | |
| EUR | -0.36% | -0.48% | -0.37% | -0.24% | -0.06% | -0.32% | -0.32% | |
| GBP | 0.12% | 0.48% | 0.09% | 0.24% | 0.40% | 0.16% | 0.18% | |
| JPY | 0.03% | 0.37% | -0.09% | 0.12% | 0.32% | 0.05% | 0.06% | |
| CAD | -0.11% | 0.24% | -0.24% | -0.12% | 0.19% | -0.09% | -0.07% | |
| AUD | -0.29% | 0.06% | -0.40% | -0.32% | -0.19% | -0.27% | -0.25% | |
| NZD | -0.06% | 0.32% | -0.16% | -0.05% | 0.09% | 0.27% | 0.01% | |
| CHF | -0.03% | 0.32% | -0.18% | -0.06% | 0.07% | 0.25% | -0.01% |
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).
Author
Vishal Chaturvedi
FXStreet
I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.
