Created
: 2025.09.09
- 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 strives to gain ground near 97.30 ahead of US NFP benchmark revision data
World FX news
Breaking news
US Dollar Index strives to gain ground near 97.30 ahead of US NFP benchmark revision data
New
2025.09.09 17:10
2025.09.09 17:10
2025.09.09 17:10
- The US Dollar Index posts a fresh six-week low near 97.30 on Tuesday.
- Investors await the key US NFP benchmark revision report for the year ending March 2025.
- Analysts at Standard Chartered Bank see the Fed reducing interest rates by 50 bps next week.
The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, strives for a firm footing during the European session on Tuesday after posting a fresh six-week low near 97.30 earlier in the day.
Faltering United States (US) labor market conditions in the wake of tariffs imposed by President Donald Trump since his return to the White House. The US Nonfarm Payrolls (NFP) report for August showed on Friday that the labor demand has slowed down further, with employers adding fewer fresh workers. In August, the US economy added 22K fresh workers, the worst reading seen since January 2021.
Weakening US job market have led to a sharp increase in bets supporting interest rate cuts by the Federal Reserve (Fed) in the policy meeting next week.
According to the CME FedWatch tool, traders see an 11.6% chance that the Fed will cut interest rates by 50 basis points (bps) to 3.75%-4.00%, while the rest point a standard 25-bps interest rate reduction.
Analysts at Standard Chartered Bank have also raised expectations for the pace of interest rate cuts by the Fed in next week's policy meeting to 50 bps, from 25 bps projected earlier, stating that the labor market had become "soft from being solid in less than six weeks".
In Tuesday's session, investors will pay close attention to the NFP benchmark revision report for employment data through March 2025. The impact of the employment revision report will be significant on market expectations for the Fed's monetary policy outlook.
In 2024, the Fed delivered a 50-bps interest rate cut in September after the payrolls revision report showed that the economy created 818K fewer jobs than had been anticipated earlier.
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
: 2025.09.09
Related articles
China FX Today: The Yuan in suspense as CPI data tests Beijing's strategy against deflation
45 minutes agoGBP/JPY retreats from 14-month high as BoJ hike bets rise
46 minutes agoChina imports large quantities of Copper ore in August - Commerzbank
2025.09.09 20:49USD/JPY: Markets digest report of BoJ's undeterred hawkishness - Scotiabank
2025.09.09 20:44China's Gas imports climb to 11-month high - Commerzbank
2025.09.09 20:42GBP gains driven by sentiment - Scotiabank
2025.09.09 20:40
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
China FX Today: The Yuan in suspense as CPI data tests Beijing's strategy against deflation
The Chinese offshore currency (CNH) is trading in relative stability on Tuesday, with the USD/CNH exchange rate at 7.1134, down less than 0.1% on the session, as markets turn their focus towards China's inflation figures for August, which will be published early on Wednesday (01:30 GMT).
New
2025.09.09 21:55GBP/JPY retreats from 14-month high as BoJ hike bets rise
GBP/JPY is trading lower on Tuesday, extending its pullback from Monday's 14-month high near 200.35, as investors reassess the monetary policy outlook on both sides of the cross.
New
2025.09.09 21:54Gold consolidates near $3,650 ahead of US NFP benchmark revision
Gold (XAU/USD) extends its record-breaking rally on Tuesday to a fresh all-time high near $3,660, marking the third straight day of gains and pushing into uncharted territory. At the time of writing, XAU/USD is trading around $3,650, up nearly 0.50% on the day.
New
2025.09.09 21:12China imports large quantities of Copper ore in August - Commerzbank
The price of Copper fell below the $10,000 per ton mark again on Friday following the release of US labor market data, Commerzbank's commodity analyst Barbara Lambrecht notes.
New
2025.09.09 20:49USD/JPY: Markets digest report of BoJ's undeterred hawkishness - Scotiabank
The Japanese Yen (JPY) is strong, up 0.7% against the US Dollar (USD) and outperforming all of the G10 currencies as we head into Tuesday's NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.09.09 20:44China's Gas imports climb to 11-month high - Commerzbank
Gas imports also rose sharply in August, climbing 11.5% month-on-month to almost 12 million tons, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.09.09 20:42GBP gains driven by sentiment - Scotiabank
The Pound Sterling (GBP) is up 0.3% against the US Dollar (USD) and outperforming most of the G10 currencies as we enter Tuesday's NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.09.09 20:40USD/CAD Price Forecast: Consolidates around 1.3800 ahead of US NFP revision
The USD/CAD pair trades in a tight range inside Monday's range around 1.3800 during the European session on Tuesday. The Loonie pair consolidates as investors await the United States (US) Nonfarm Payrolls (NFP) benchmark revision report, which will be published at 14:00 GMT.
New
2025.09.09 20:40China's coal imports rose in August - Commerzbank
As transport data had previously indicated, China imported significantly more coal in August than in previous months: according to data from the Chinese customs authority, 42.7 million tons of coal were imported, the highest level since December last year, Commerzbank's commodity analyst Barbara Lam
New
2025.09.09 20:38EUR quiet but threatening multi-year highs - Scotiabank
The Euro (EUR) is quietly consolidating its recent gains and trading at fresh one month highs vs. the US Dollar (USD), Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.09.09 20:36Disclaimer:
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
