The US Dollar (USD) faces intense selling pressure against its major currency peers ahead of the release of the United States (US) preliminary Q1 Gross Domestic Product (GDP) and the Personal Consumption Expenditure Price Index (PCE) data for March, which will be published at 12:30 GMT.
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 Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.32% | -0.39% | -2.61% | -0.19% | -0.59% | -0.73% | -0.84% | |
| EUR | 0.32% | -0.04% | -2.36% | 0.14% | -0.26% | -0.38% | -0.49% | |
| GBP | 0.39% | 0.04% | -2.28% | 0.17% | -0.21% | -0.34% | -0.45% | |
| JPY | 2.61% | 2.36% | 2.28% | 2.58% | 2.18% | 2.00% | 1.90% | |
| CAD | 0.19% | -0.14% | -0.17% | -2.58% | -0.41% | -0.56% | -0.65% | |
| AUD | 0.59% | 0.26% | 0.21% | -2.18% | 0.41% | -0.12% | -0.23% | |
| NZD | 0.73% | 0.38% | 0.34% | -2.00% | 0.56% | 0.12% | -0.11% | |
| CHF | 0.84% | 0.49% | 0.45% | -1.90% | 0.65% | 0.23% | 0.11% |
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).
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.7% lower at around 98.28. The USD Index opened strongly after the Federal Reserve’s (Fed) monetary policy on Wednesday.
The US Bureau of Economic Analysis (BEA) is expected to show that the economy grew at an annualized pace of 2.3%, stronger than the previous reading of 0.5%.
The US core PCE inflation – which is the Fed’s preferred inflation gauge – is expected to have accelerated to 3.2% Year-on-Year (YoY) from 3% in February. On a monthly basis, the Fed’s preferred measure is expected to have risen at a moderate pace of 0.3% against the prior release of 0.4%.
Signs of strong US GDP growth and accelerating price pressures would prompt expectations for interest rate hikes by the Fed this year.
On Wednesday, the Fed left interest rates unchanged in the range of 3.50%-3.75%, as expected. However, the decision appeared to be a hawkish hold, as three members of the rate-setting committee dissented from the hold decision and advocated for a move away from the dovish bias, while one member voted for an interest rate cut.
Fed Chair Jerome Powell said in the press conference, “We [central bank] think the policy rate is in a good place,” while warning that the “economic outlook remains highly uncertain”, and “higher energy prices will push up inflation in the near term”.
Economic Indicator
Gross Domestic Product Annualized
The real Gross Domestic Product (GDP) Annualized, released quarterly by the US Bureau of Economic Analysis, measures the value of the final goods and services produced in the United States in a given period of time. Changes in GDP are the most popular indicator of the nation’s overall economic health. The data is expressed at an annualized rate, which means that the rate has been adjusted to reflect the amount GDP would have changed over a year’s time, had it continued to grow at that specific rate. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
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Source: https://www.fxstreet.com/news/us-dollar-index-tumbles-below-9830-ahead-of-us-flash-q1-gdp-pce-inflation-data-202604301144
