|

US Dollar Index gives back some early gains, US CPI data awaited

  • The US Dollar Index gives up half of its early gains, but still remains higher at around 98.00.
  • US President Trump rejects Iran’s response to the peace proposal, calling it “totally unacceptable”.
  • Investors await the US CPI data for fresh cues on the Fed’s monetary policy outlook.

The US Dollar (USD) surrenders half of its early gains during the European trading session at the start of the week, with the US Dollar Index (DXY) dropping to near 98.00 from the intraday high of 98.15.

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.

USDEURGBPJPYCADAUDNZDCHF
USD0.13%0.24%0.27%-0.06%0.09%0.33%0.20%
EUR-0.13%0.11%0.11%-0.22%-0.03%0.21%0.07%
GBP-0.24%-0.11%0.00%-0.32%-0.14%0.10%-0.05%
JPY-0.27%-0.11%0.00%-0.32%-0.13%0.09%-0.06%
CAD0.06%0.22%0.32%0.32%0.19%0.37%0.26%
AUD-0.09%0.03%0.14%0.13%-0.19%0.22%0.09%
NZD-0.33%-0.21%-0.10%-0.09%-0.37%-0.22%-0.12%
CHF-0.20%-0.07%0.05%0.06%-0.26%-0.09%0.12%

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).

The Greenback started the week on a positive note as a sharp recovery in the oil price, following United States (US) President Donald Trump’s rejection of Iran’s counter demands against Washington’s peace proposal, improved the appeal of the US Dollar.

In the last few months, the US Dollar has performed strongly as the oil price gained sharply due to the closure of the Strait of Hormuz, which led to a significant jump in global inflation expectations, and weakened expectations of interest rate cuts by the Federal Reserve (Fed) this year.

Over the weekend, US President Trump said in a post on Truth Social, “I have just read the response from Iran’s so-called “Representatives.” I don’t like it — TOTALLY UNACCEPTABLE!”

A report from CNN showed that Iran wants the recognition of its sovereignty over the blockaded Hormuz and compensation for war damages.

Diminished hopes of a permanent US-Iran resolution have also improved the safe-haven demand of the US Dollar.

Meanwhile, investors await the US Consumer Price Index (CPI) data for April, which will be released on Tuesday. The inflation data is expected to have a significant impact on the Fed’s monetary policy expectations. The CPI report is expected to show that the headline inflation rose to 3.4% from 3.3% in March.

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 May 12, 2026 12:30

Frequency: Monthly

Consensus: 3.4%

Previous: 3.3%

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.

More from Sagar Dua
Share:

Editor's Picks

AUD/USD bounces back toward 0.6950 on fresh USD supply

AUD/USD bounces back toward 0.6950 in the Asian session on Friday. The US Dollar retreats from 17-month highs as traders take profits off the table ahead of the all-important US Nonfarm Payrolls report. Meanwhile, the Australian Dollar draws support from reviving expectations of a November interest rate hike amid elevated global yields and inflation risks.


USD/JPY struggles near 158.00 as USD retreats ahead of NFP

USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat. Traders reposition themselves ahead of US Nonfarm Payrolls.

Gold remains capped below $4,200 as traders await US NFP for Fed rate cuts

Gold extends its sideways move on Friday, trading below the $4,200 mark heading into the European session as traders await the release of US employment details. The US Nonfarm Payrolls report is expected to show that the economy added only 90K jobs in September, down from the previous month's reading of 162K.

Crypto Today: Bitcoin, Ethereum and XRP gains reinforce bullish outlook

Cryptocurrency prices are broadly recovering on Friday, led by Bitcoin moving above $86,000. Ethereum has reaffirmed its bullish outlook, rising above $2,700 while the immediate area at $2,800 caps upside. Meanwhile, Ripple hovers near $1.54.

US Nonfarm Payrolls expected to soften in September

The United States Bureau of Labor Statistics is set to release September Nonfarm Payrolls (NFP) data on Friday at 12:30 GMT. Investors expect NFP to rise by 90K in September following August’s impressive 162K increase. The Unemployment Rate is seen holding steady at 4.1%, while the monthly wage inflation, as measured by the change in Average Hourly Earnings, is projected to hold steady at 0.3%.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.