Created
: 2025.09.24
- 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 rises to near 97.50 due to risk-off sentiment, Fed caution
World FX news
Breaking news
US Dollar Index rises to near 97.50 due to risk-off sentiment, Fed caution
New
2025.09.24 14:13
2025.09.24 14:13
2025.09.24 14:13
- US Dollar Index gains ground as Fed Powell emphasized the need to balance persistent inflation with a weakening labor market.
- CME FedWatch tool indicates nearly a 92% possibility of a Fed rate cut in October.
- The Greenback may strengthen further as safe-haven demand rises amid new tariff threats from US President Donald Trump against Russia.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after two days of losses and trading around 97.30 during the Asian hours on Wednesday. Traders await the upcoming US Q2 Gross Domestic Product Annualized and Personal Consumption Expenditures (PCE) Price Index data, the Federal Reserve's preferred inflation gauge, due later in the week.
The Greenback gains ground as the US Federal Reserve (Fed) Chair Jerome Powell struck a cautious note, stressing that the US central bank must weigh stubborn inflation against a softening job market, calling it "a challenging situation" and reiterating comments from last week. However, the CME FedWatch tool suggests that money markets are currently pricing in nearly a 92% possibility of a Fed rate cut in October, up from 90% a day earlier.
The flash reading of the S&P Global Purchasing Managers Index (PMI) showed that business activity in the United States (US) slowed in September. Composite PMI ticked down to 53.6 from 54.6 in August, pointing to a private sector that seems to be struggling to strengthen further. Manufacturing PMI eased to 52.0 from 53, signalling waning momentum in the sector. Services PMI slipped to 53.9 from 54.5, suggesting demand there may be easing.
The US Dollar may further appreciate due to increased safe-haven demand, driven by new tariff threats from US President Donald Trump on Russia. At the United Nations (UN) General Assembly on Tuesday, President Trump warned that the United States (US) is ready to impose a "very strong round of powerful tariffs" if Russia refuses to end the war in Ukraine. Trump also criticized European countries for buying Russian energy, arguing that "they are funding the war against themselves," and urged the EU to join Washington in implementing tariffs to ensure their effectiveness.
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
: 2025.09.24
Related articles
EUR/USD eases within previous ranges as markets look for direction
5 minutes agoECB's Cipollone: Risks to inflation are very balanced
19 minutes agoNZD/USD seems vulnerable near mid-0.5800s, three-week low amid a firmer USD
19 minutes agoGBP/JPY Price Analysis: Eyes 200.00 barrier after breaking above nine-day EMA
21 minutes agoForex Today: Markets remain choppy ahead of German business sentiment and US housing data
21 minutes agoEUR/GBP flat lines below 0.8750 as traders brace for German IFO Survey release
25 minutes ago
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
EUR/USD eases within previous ranges as markets look for direction
EUR/USD has pulled back to the 1.1800 area at the time of writing on Wednesday, from weekly highs near the 1.1820.
New
2025.09.24 16:14ECB's Cipollone: Risks to inflation are very balanced
European Central Bank (ECB) Executive Board member Piero Cipollone said that the central bank doesn't see major threats to inflation in either direction, adding that interest rates are currently well positioned, Bloomberg reported on Wednesday.
New
2025.09.24 15:59NZD/USD seems vulnerable near mid-0.5800s, three-week low amid a firmer USD
The NZD/USD pair attracts fresh sellers following a modest Asian session rise to the 0.5865 area and turns lower for the second consecutive day on Wednesday.
New
2025.09.24 15:59GBP/JPY Price Analysis: Eyes 200.00 barrier after breaking above nine-day EMA
GBP/JPY extends its gains for the third consecutive day, trading around 199.80 during the early European hours on Wednesday.
New
2025.09.24 15:58Forex Today: Markets remain choppy ahead of German business sentiment and US housing data
Here is what you need to know on Wednesday, September 24:
New
2025.09.24 15:57EUR/GBP flat lines below 0.8750 as traders brace for German IFO Survey release
The EUR/GBP cross trades on a flat note near 0.8735 during the early European trading hours on Wednesday. However, the concerns over the economic downturn in France, the second-largest economy within the Eurozone, could weigh on the Euro (EUR) against the Pound Sterling (GBP).
New
2025.09.24 15:53When is the German IFO Survey and how it could affect EUR/USD?
Germany's IFO institute will publish its business survey for September on Wednesday at 08.00 GMT. The headline IFO Business Climate Index is expected to rise to 89.3 in September from the previous reading of 89.0.
New
2025.09.24 15:13Crude oil price today: WTI price bearish at European opening
West Texas Intermediate (WTI) Oil price falls on Wednesday, early in the European session. WTI trades at $63.40 per barrel, down from Tuesday's close at $63.56.Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $67.06 after its previous daily close at $67.25.
New
2025.09.24 15:03Japan's Takaichi: Government is responsible for setting direction of fiscal, monetary policy
Japan's former Internal Affairs Minister Sanae Takaichi, a contender to be the next Prime Minister, said on Wednesday that the government is responsible to set direction of fiscal and monetary policy.
New
2025.09.24 14:44AUD/JPY adds to stronger Australian CPI-led gains, hits fresh weekly top around 98.00
The AUD/JPY cross rebounds sharply from the 97.20 area, or a two-week low touched during the Asian session on Wednesday, following the release of monthly consumer inflation figures from Australia.
New
2025.09.24 14:38Disclaimer:
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
