The US Dollar rises further to near 100.90 on a hawkish Fed narrative.
Fed officials warn that energy shocks and strong demand are both fuelling inflation.
Investors keenly await flash US S&P Global PMI data for September.
The US Dollar trades higher as financial markets embrace hawkish Federal Reserve (Fed) view. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.35% higher to near 100.90, the highest level seen in over seven weeks.
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 Australian Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
USD | 0.37% | 0.51% | 0.33% | 0.17% | 0.71% | 0.65% | 0.23% | |
EUR | -0.37% | 0.13% | -0.04% | -0.18% | 0.34% | 0.27% | -0.13% | |
GBP | -0.51% | -0.13% | -0.15% | -0.32% | 0.21% | 0.14% | -0.19% | |
JPY | -0.33% | 0.04% | 0.15% | -0.15% | 0.36% | 0.32% | -0.03% | |
CAD | -0.17% | 0.18% | 0.32% | 0.15% | 0.52% | 0.47% | 0.12% | |
AUD | -0.71% | -0.34% | -0.21% | -0.36% | -0.52% | -0.06% | -0.39% | |
NZD | -0.65% | -0.27% | -0.14% | -0.32% | -0.47% | 0.06% | -0.35% | |
CHF | -0.23% | 0.13% | 0.19% | 0.03% | -0.12% | 0.39% | 0.35% |
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).
A slew of Fed officials has not ruled out the possibility of more interest rate hikes in the remainder of the year in their latest commentary as they see inflation risks to be persistent due to energy shocks and strong demand.
Fed rhetoric keeps Dollar bulls on the front foot
Brown Brothers Harriman’s Elias Haddad highlights that Fed officials are reinforcing the prospect of additional tightening, noting that “more tightening is in the pipeline.” He points out that St. Louis Fed President Alberto Musalem, a non-voter this year, cautioned that “further rate hikes may be needed to curb inflation,” while Chicago Fed President Austan Goolsbee, a 2027 voter, warned of “more aggressive and more and more front-loaded” rate hikes if demand is overheating. Haddad argues this evolving policy backdrop underpins the Fed’s hawkish stance and continues to support the US Dollar’s relative appeal versus the Euro, Pound and Yen.
Meanwhile, investors await the preliminary US private sector Purchasing Managers’ Index (PMI) data for September, which will be published at 13:45 GMT. The S&P Global PMI report is expected to show that the overall business activity expanded at a moderate pace due to a slowdown in both manufacturing and the services sector.
US Dollar Index Technical Analysis
Bias: In the daily chart, Dollar Index Spot trades at 100.90. The near-term bias is bullish as price holds above the 20-day exponential moving average (EMA) at 99.84, reinforcing a constructive pattern of higher closes.
Momentum: Momentum is strong, with the Relative Strength Index (14) hovering just below the overbought threshold at 69.52, which suggests persistent buying pressure but also warns that the rally may be prone to consolidation phases.
Support: On the downside, initial support is located at the psychological level of 100.00, followed by 20-day EMA around 99.84.
Resistance: Looking up, the asset is expected to exten the rally towards the July 28 high at 101.64.
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