Created
: 2025.10.23
- 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 hovers around 99.00 due to potential for US-China trade deal
World FX news
Breaking news
US Dollar Index hovers around 99.00 due to potential for US-China trade deal
New
2025.10.23 11:20
2025.10.23 11:20
2025.10.23 11:20
- US Dollar Index rises after Trump said he expects to reach several agreements with Chinese President Xi Jinping.
- Trump administration mulls restricting China-bound exports made with or powered by US software.
- A Reuters poll showed 115 of 117 economists expect the Fed to cut rates by 25 basis points in October.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after recovering recent losses from the previous session and trading around 99.00 during the Asian hours on Thursday.
The Greenback receives support as US President Donald Trump said late Wednesday that he expects to strike several agreements with Chinese President Xi Jinping during their meeting in South Korea next week. The Trump-Xi discussions are expected to cover a wide range of issues, including US soybean exports, limiting nuclear weapons, and China's purchases of Russian Oil.
However, Reuters reported that the Trump administration is considering a broad plan to restrict exports to China of products powered by or manufactured with US software, spanning items from laptops to jet engines, in response to Beijing's recent curbs on rare earth exports.
The US Dollar may again lose ground due to the prolonged US government shutdown, which delays key US economic data releases, including Nonfarm Payrolls (NFP), adding uncertainty for financial markets and the Federal Reserve (Fed). The CME FedWatch Tool indicates that markets are now pricing in nearly a 97% chance of a Fed rate cut in October and a 96% possibility of another reduction in December.
A Reuters poll suggested that 115 out of 117 economists have predicted that the Fed will reduce interest rates by 25 basis points (bps) to 3.75%-4.00% in the monetary policy announcement on October 29. For the year, 83 of 117 economists expect the US Federal Reserve to cut interest rates twice, while 32 anticipate one cut.
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
: 2025.10.23
Related articles
GBP/USD slips below 1.3350 as traders adopt caution due to US data blackout
13 minutes agoUSD/INR ticks higher as US Dollar rebounds despite ongoing US-China trade tensions
27 minutes agoEUR/JPY softens below 1.1600 as the EU imposes new sanctions on Russia
42 minutes agoUSD/JPY gains near 152.50 as traders expect Takaichi to back accommodative policies
2025.10.23 13:19US mulls curbs on exports to China made with US software -- Reuters
2025.10.23 11:38US Dollar Index hovers around 99.00 due to potential for US-China trade deal
2025.10.23 11:19
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 slips below 1.3350 as traders adopt caution due to US data blackout
GBP/USD extends its losing streak for the fifth consecutive day, trading around 1.3340 during the Asian hours on Thursday.
New
2025.10.23 14:08USD/INR ticks higher as US Dollar rebounds despite ongoing US-China trade tensions
The Indian Rupee (INR) opens on a slightly cautious note against the US Dollar (USD) on Thursday after two holidays in Indian markets.
New
2025.10.23 13:54EUR/JPY softens below 1.1600 as the EU imposes new sanctions on Russia
The EUR/JPY cross loses ground to near 1.1590 during the Asian trading hours on Thursday.
New
2025.10.23 13:39India Gold price today: Gold falls, according to FXStreet data
Gold prices fell in India on Thursday, according to data compiled by FXStreet.
New
2025.10.23 13:35USD/JPY gains near 152.50 as traders expect Takaichi to back accommodative policies
USD/JPY extends its gains for the fifth successive session, trading around 152.50 during the Asian hours on Thursday.
New
2025.10.23 13:19Silver Price Forecast: XAG/USD moves above $48.50 due to increased safe-haven demand
Silver price (XAG/USD) edges higher after two days of losses, trading around $48.70 per troy ounce during the Asian hours on Thursday.
New
2025.10.23 12:42Gold tumbles as traders book profits ahead of key US inflation data
Gold price (XAU/USD) edges lower below $4,100 during the early Asian trading hours on Thursday. The precious metal has faced a sharp sell-off in the previous sessions on easing tensions between the United States (US) and China.
New
2025.10.23 11:41US mulls curbs on exports to China made with US software -- Reuters
The White House is considering a plan to curb an array of software-powered exports to China, from laptops to jet engines, to retaliate against Beijing's latest round of rare earth export restrictions, Reuters reported late Wednesday.
New
2025.10.23 11:38US Dollar Index hovers around 99.00 due to potential for US-China trade deal
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after recovering recent losses from the previous session and trading around 99.00 during the Asian hours on Thursday.
New
2025.10.23 11:19Australian Dollar gains following Trump's upbeat comments on potential deals with China
The Australian Dollar (AUD) advances against the US Dollar (USD) on Thursday after US President Donald Trump said that he thinks something will work out with China in a meeting scheduled with China's Xi Jinping in South Korea.
New
2025.10.23 10:44Disclaimer:
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
