United States Dollar Index holds above 101.50 on hawkish Fed bets
- US Dollar Index stays firm as growing hawkish sentiment suggests the Fed will keep interest rates higher for longer.
- CME FedWatch tool suggests that traders are pricing in a nearly 85.5% chance of a Fed hike in December.
- US S&P Global Composite PMI climbed to 52.2, beating May's 51.5 and signaling healthy business expansion.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, continues its winning streak for the third successive day and is reaching a fresh 13-month high of 101.60 during the European hours on Wednesday.
The Greenback remains stronger amid rising hawkish sentiment surrounding the Federal Reserve (Fed) policy outlook. Fed officials left interest rates unchanged but signaled increasing support for further tightening, while new Fed Chair Kevin Warsh reiterated his commitment to restoring price stability.
The CME FedWatch tool indicates that the markets adjusted expectations for a more hawkish stance from the Federal Reserve (Fed). Traders are now pricing in a nearly 85.5% chance of a Fed hike in December, up from 61% before last week’s FOMC meeting.
On the US data front, the S&P Global Composite Purchasing Managers’ Index (PMI) climbed to 52.2 in June, comfortably beating May’s reading of 51.5 and signaling healthy business expansion. Traders await the US May Personal Consumption Expenditures (PCE) report, the Fed’s preferred inflation gauge, for clues on future monetary policy.
Meanwhile, the US manufacturing sector showed remarkable resilience, with PMI jumping to 55.7 from the previous month's 55.1, easily outperforming forecasts of 54.8. Additionally, the Services PMI printed at 51.3, ticking up from May's 50.7 and clearing the consensus estimate of 51.0, proving that demand in the broader service economy remains incredibly sticky.
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 New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.30% | 0.13% | 0.13% | 0.16% | 0.35% | 0.47% | 0.29% | |
| EUR | -0.30% | -0.17% | -0.18% | -0.15% | 0.04% | 0.14% | -0.01% | |
| GBP | -0.13% | 0.17% | -0.02% | -0.01% | 0.22% | 0.30% | 0.15% | |
| JPY | -0.13% | 0.18% | 0.02% | 0.04% | 0.23% | 0.31% | 0.16% | |
| CAD | -0.16% | 0.15% | 0.00% | -0.04% | 0.20% | 0.26% | 0.15% | |
| AUD | -0.35% | -0.04% | -0.22% | -0.23% | -0.20% | 0.08% | -0.08% | |
| NZD | -0.47% | -0.14% | -0.30% | -0.31% | -0.26% | -0.08% | -0.15% | |
| CHF | -0.29% | 0.00% | -0.15% | -0.16% | -0.15% | 0.08% | 0.15% |
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
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
