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US Dollar Index hovers around 100.00, nine-week highs ahead of Nonfarm Payrolls
Friday, 1 August 2025 13:08 WIB | US DOLLAR |DOLLAR

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, remains stronger for the seventh successive day and is trading around 100.00 during the Asian hours on Friday.

The Greenback surged as the US Personal Consumption Expenditure (PCE) Price Index report suggested that price pressures would increase in the second half of 2025 and delay the US Federal Reserve's (Fed) interest rate cuts until at least October. Traders await the United States (US) Nonfarm Payrolls (NFP), due later in the North American session, which is expected to hold in positive territory in July.

However, the market sentiment remained cautious after US President Donald Trump imposed higher tariff rates on US trading partners set to go into effect on August 1. On Thursday, Trump signed an executive order imposing tariffs ranging from 10% to 41% on US imports from dozens of countries and foreign locations, including Canada, India, and Taiwan, that failed to reach trade deals deadline, per Reuters.

The US Bureau of Economic Analysis reported on Thursday that Core US Personal Consumption Expenditure Price Index (PCE) inflation ticked higher in June, rising 0.3% MoM as many market participants had expected. On an annualized basis, PCE inflation accelerated to 2.6% YoY, outrunning the expected hold at 2.5%.

The US Department of Labour (DOL) released Initial Jobless Claims, the number of US citizens submitting new applications for unemployment insurance, which rose to 218K for the week ending July 26. The latest print fell short of initial estimates (224K), while last week's prints stood at 217K.

Source: FXstreet

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