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: 2025.01.15
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US President-elect Trump is looking to enact pro-fossil fuel executive orders
World FX news
Breaking news
US President-elect Trump is looking to enact pro-fossil fuel executive orders
New
2025.01.15 08:37
2025.01.15 08:37
2025.01.15 08:37
President-elect Donald Trump is preparing executive orders aimed at boosting American fossil fuels ahead of his inauguration next Monday, per the Wall Street Journal.
Trump is expected to order agencies to begin unwinding President Biden's limits on drilling offshore and on federal land. Additionally, Trump intends to push for a rollback of tailpipe emissions rules he has described as an "EV mandate," as well as resume approvals for plants that export US natural gas.
Market reaction
The US Dollar Index (DXY) is trading 0.03% higher on the day at 109.21 as of writing.
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Last updated
: 2025.01.15
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FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
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USD/CHF softens below 0.9150 as investors await US CPI release
The USD/CHF pair trades with a mild negative bias around 0.9120 during the early European session on Wednesday.
New
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2025.01.15 13:22EUR/JPY Price Forecast: Edges lower to near 162.50; initial support appears at 14-day EMA
EUR/JPY trades slightly lower, hovering around 162.60 during Wednesday's Asian trading session, following a 1% gain in the previous session.
New
2025.01.15 13:20ECB's Lane: It takes time for monetary easing to impact and take effect
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2025.01.15 12:28UK CPI inflation expected to edge up slightly in December, core rate to ease
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2025.01.15 12:15USD/INR gains momentum ahead of US CPI release
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2025.01.15 12:12Disclaimer:
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