The US Dollar Index (DXY), which measures the greenback against a basket of six major currencies, held firm above 107.00 on Friday after January Personal Consumption Expenditures (PCE) inflation data matched estimates, easing concerns over an unexpected spike in inflation.
The greenback held onto its recent gains as President Donald Trump reiterated that tariffs on Canada, Mexico and China will be implemented on March 4. Meanwhile, risk sentiment improved with US equity markets erasing earlier losses and moving higher.
Daily Market Movers Summary: US dollar holds firm after PCE report
The DXY hovered around 107.30, aiming to maintain its bullish momentum heading into the weekend.
The Trump administration confirmed that tariffs on Canada and Mexico will take effect on March 4, with China facing an additional 10% levy. January PCE inflation data met expectations with the monthly PCE at 0.3%, unchanged from the previous reading.
Core PCE was 0.3%, up from 0.2% in December, while annualized PCE was 2.6%, slightly beating expectations but in line with December's 2.6%. Core PCE came in at 2.6%, down from a revised 2.9% in December.
Also, the Chicago Purchasing Managers' Index (PMI) jumped to 45.5, beating consensus of 40.6 and improving from 39.5 in January.
On expectations, the CME FedWatch Tool indicated a 30% probability that the Federal Reserve will keep interest rates unchanged at 4.25%-4.50% in June, with the rest indicating a potential cut. On the foreign policy front, tensions have escalated between U.S. President Donald Trump and Ukrainian leader Volodymyr Zelenskyy over peace talks. Zelenskyy pushed back on U.S. promises on defense, while Trump accused him of being "disrespectful" in a heated public exchange. (Newsmaker23)
Source: FXstreet
The USD/CHF pair weakened for the third consecutive day and traded around 0.7960 in early European trading on Tuesday. The Swiss franc strengthened on increased demand for safe haven assets, following...
The US Dollar Index (DXY) trended sluggishly around 99.06 on Monday (January 19th), as liquidity thinned as US markets were closed for Martin Luther King Jr. Day. Despite limited movement, global sent...
The US dollar is expected to rise for a third straight day on Thursday (January 8), but trading remains cautious as investors position themselves ahead of Friday's Nonfarm Payrolls (NFP) report. Recen...
The dollar index edged up to 98.5 on Tuesday, its strongest level in more than two weeks, as investors focused on a slate of key economic data for the US. Recent indicators have pointed to some soften...
The US dollar opened 2026 weakly on Friday. Throughout last year, the dollar was pressured by many major currencies due to narrowing interest rate differentials between the US and other countries. Con...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...