Created
: 2025.06.10
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
US Dollar Index strengthens above 99.00 amid hope for US-China trade deal
World FX news
Breaking news
US Dollar Index strengthens above 99.00 amid hope for US-China trade deal
2025.06.10 16:08
2025.06.10 16:08
- The US Dollar Index gains momentum to near 99.25 in Tuesday's early European session, adding 0.22% on the day.
- Hope for US-China trade talk progress underpins the US Dollar.
- Traders will take more cues from the US May CPI inflation data. Which is due later on Wednesday.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, rebounds to around 99.25 during the early European session on Tuesday amid improved risk sentiment. Investors will closely monitor the outcome of the United States (US)-China trade talks, which are set to continue in London later on Tuesday.
Trade talks between the US and China began in London on Monday and were set to continue on Tuesday. The Trump administration indicated it would remove restrictions on some tech exports in exchange for assurances that China is easing limits on rare earth shipments, which are critical to a wide array of energy, defense and technology products.
US Treasury Secretary Scott Bessent described Monday's discussions as a "good meeting." Optimism over easing US-China trade tensions dampens the concerns over the economic slowdown in the world's two largest economies, supporting the Greenback.
The US Consumer Price Index (CPI) inflation data for May will take center stage on Wednesday. The report could offer some hints about the tariff impact and interest rate outlook. The headline CPI is expected to see an increase of 2.5% YoY in May, while the core CPI is estimated to see a rise of 2.9% YoY in the same period. If the report shows a surprise softer inflation outcome, this could drag the USD lower broadly.
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
: 2025.06.10
Related articles
GBP/USD holds above key level, despite rate divergene and trade war jitters
5 minutes agoEUR/USD dips as Fed rate cut bets fade and tariff deadline nears
51 minutes agoNZD/USD declines for third day on risk aversion ahead of RBNZ rate decision
2025.07.07 23:33AUD/USD declines as market braces for RBA rate cut amid rising trade tensions
2025.07.07 22:12Silver slides as a rebound in yields supports a stronger US Dollar
2025.07.07 22:03US Treasury Sec. Bessent: Will have several trade announcements in next 48 hours
2025.07.07 21:57
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.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
GBP/USD holds above key level, despite rate divergene and trade war jitters
The Pound Sterling is virtually unchanged during the North American session, yet it remains above a key technical level, following a solid US jobs report in the United States (US). This, along with the likelihood of further tax hikes by the UK government, is exerting pressure on Cable.
New
2025.07.08 00:50EUR/USD dips as Fed rate cut bets fade and tariff deadline nears
The Euro (EUR) is falling against the US Dollar (USD) at the start of the American session, with EUR/USD testing 1.7360 at the time of writing.
New
2025.07.08 00:05NZD/USD declines for third day on risk aversion ahead of RBNZ rate decision
The New Zealand Dollar (NZD) extends its losing streak against the US Dollar (USD) for the third consecutive day on Monday, with the NZD/USD trading near 0.6005, down nearly 0.90% on the day.
New
2025.07.07 23:33AUD/USD declines as market braces for RBA rate cut amid rising trade tensions
The Australian Dollar (AUD) weakens further against the US Dollar (USD) on Monday, marking its third consecutive daily decline, as investors grow increasingly confident the Reserve Bank of Australia (RBA) will deliver another rate cut at Tuesday's meeting.
New
2025.07.07 22:12Silver slides as a rebound in yields supports a stronger US Dollar
Silver bulls are suffering losses Monday as the strong US Dollar and rising US yields reduce demand for precious metals.
New
2025.07.07 22:03US Treasury Sec. Bessent: Will have several trade announcements in next 48 hours
US Treasury Secretary Scott Bessent told CNBC on Monday that they are going to have several trade announcements in the next 48 hours.
New
2025.07.07 21:57US Dollar recovers as market braces for tariff impact
The US Dollar (USD) kicks off the week on a firmer footing against its major peers, underpinned by safe-haven demand and reduced odds of near-term Federal Reserve (Fed) interest rate cuts.
New
2025.07.07 21:33EUR/GBP Price Forecast: Euro has lost steam and is likely to retest 0.8600
The Pound is faring better than the Euro in a risk-averse market, as investors await more clarity about the size of the US tariffs and the date of their introduction.
New
2025.07.07 21:04Gold slips as the US Dollar gains on hawkish Fed and trade optimism
Gold (XAU/USD) is currently under pressure as markets await more news of trade deals ahead of Wednesday's tariff deadline.
New
2025.07.07 21:02Dow futures drops as US trade uncertainty hurts risk appetite
Dow Futures face a slight selling pressure ahead of opening on Monday after a holiday-stretched weekend. Unites States (US) equities trade lower in a risk-off market sentiment amid uncertainty surrounding the global trade in the countdown to the expire of 90-day tariff pause on July 9.
New
2025.07.07 20:24Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
