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United States Dollar Index holds correction near 101.10, eyes on inflation data

  • The US Dollar Index trades lower around 101.10 ahead of the US CPI data for June.
  • Latest FOMC minutes show that policymakers are worried about high inflationary pressures.
  • Investors will also focus on Fed Chair Warsh’s testimony before Congress.

The US Dollar (USD) holds its early corrective move in Tuesday’s European session ahead of the United States (US) Consumer Price Index (CPI) data for June, which will be published at 12:30 GMT.

At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.15% lower to near 101.10

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.23%-0.28%-0.16%-0.31%-0.38%-0.92%-0.42%
EUR0.23%-0.05%0.06%-0.09%-0.16%-0.68%-0.19%
GBP0.28%0.05%0.11%-0.02%-0.09%-0.63%-0.13%
JPY0.16%-0.06%-0.11%-0.14%-0.24%-0.77%-0.27%
CAD0.31%0.09%0.02%0.14%-0.09%-0.61%-0.11%
AUD0.38%0.16%0.09%0.24%0.09%-0.53%-0.01%
NZD0.92%0.68%0.63%0.77%0.61%0.53%0.51%
CHF0.42%0.19%0.13%0.27%0.11%0.01%-0.51%

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).

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On Monday, the USD Index gained sharply to near 101.33 after US President Donald Trump claimed Washington to be the rightful recipient of toll fees near the Strait of Hormuz, a critical chokepoint to almost 20% of global energy supply.

Investors will closely monitor the inflation data as Federal Open Market Committee (FOMC) minutes of the June policy meeting showed that policymakers see high inflation as a “dominant risk”. Therefore, it would have a significant impact on the Federal Reserve’s (Fed) interest rate expectations.

Currently, the CME FedWatch tool shows that the odds of the Fed delivering at least one interest rate hike this year are 11.2%.

According to estimates, the US headline CPI growth cooled down to 3.8% Year-on-Year (YoY) in June from 4.2% in May, with core figures rising steadily by 2.9%.

Later in the day, investors will focus on Fed Chairman Kevin Warsh’s testimony before Congress. Warsh is unlikely to deliver forward guidance on interest rates ,as he said in his July policy press conference that forward-looking comments are not well-suited in current policy juncture.

Economic Indicator

Consumer Price Index (YoY)

Inflationary or deflationary tendencies are measured by periodically summing the prices of a basket of representative goods and services and presenting the data as The Consumer Price Index (CPI). CPI data is compiled on a monthly basis and released by the US Department of Labor Statistics. The YoY reading compares the prices of goods in the reference month to the same month a year earlier.The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.

Read more.

Next release: Tue Jul 14, 2026 12:30

Frequency: Monthly

Consensus: 3.8%

Previous: 4.2%

Source: US Bureau of Labor Statistics

The US Federal Reserve (Fed) has a dual mandate of maintaining price stability and maximum employment. According to such mandate, inflation should be at around 2% YoY and has become the weakest pillar of the central bank’s directive ever since the world suffered a pandemic, which extends to these days. Price pressures keep rising amid supply-chain issues and bottlenecks, with the Consumer Price Index (CPI) hanging at multi-decade highs. The Fed has already taken measures to tame inflation and is expected to maintain an aggressive stance in the foreseeable future.

Author

Sagar Dua

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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