Created
: 2025.11.07
- 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 rebounds after a sharp decline, Michigan Consumer Sentiment eyed
World FX news
Breaking news
US Dollar Index rebounds after a sharp decline, Michigan Consumer Sentiment eyed
New
2025.11.07 11:25
2025.11.07 11:25
2025.11.07 11:25
- US Dollar Index lost ground as the Challenger Job Cuts report raised the Fed rate cut bets.
- US firms announced over 153,000 job cuts in October, the highest October total in more than two decades.
- The US government shutdown drags on, hitting a record duration with no resolution in sight.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is rebounding after losing nearly 0.5% in the previous session and trading around 99.80 during the Asian hours on Friday. The preliminary Michigan Consumer Sentiment Index data will be eyed later in the day.
The US Dollar faced challenges as the Challenger Job Cuts report prompted the Federal Reserve (Fed) to lower interest rates at its December meeting. Challenger, Grey & Christmas on Thursday, announced that companies cut over 153,000 jobs in October, marking the biggest reduction for the month in more than 20 years.
The Greenback could further lose ground as the US government shutdown extends further, hitting a record with still no solution in sight. The Senate is not currently set to vote on a House-passed measure to reopen the government on Thursday, after it failed to advance for the 14th time on Tuesday.
St. Louis Fed President Alberto Musalem said late Thursday that inflation risks remain tilted to the upside. Musalem noted that while tariffs are currently adding upward pressure to prices, their impact is expected to diminish next year. He added that longer-term inflation expectations remain well anchored. The US economy has shown resilience despite ongoing uncertainty, with the labor market softening recently but still hovering near full employment, he added.
Washington moves to suspend penalties on China's shipbuilding sector, easing trade tensions between the world's two largest economies. The Office of the United States (US) Trade Representative announced that it is seeking public input on a one-year suspension of tariffs on Chinese imports.
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
: 2025.11.07
Related articles
USD/CAD remains above 1.4100 near six-month highs despite decreasing Fed rate cut odds
52 minutes agoNZD/USD drifts lower below 0.5650 as China's Trade Surplus narrows in October
59 minutes agoJapanese Yen pulls back from over one-week top against USD on weaker domestic data
2025.11.07 11:28US Dollar Index rebounds after a sharp decline, Michigan Consumer Sentiment eyed
2025.11.07 11:24Australian Dollar inches lower ahead of China's Trade Balance data
2025.11.07 10:49PBOC sets USD/CNY reference rate at 7.0836 vs. 7.0865 previous
2025.11.07 10:15
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
Gold draws support from safe-haven flows and Fed rate cut bets
Gold (XAU/USD) attracts fresh buyers following the previous day's late pullback from the vicinity of the weekly high and trades around the $4,000 psychological mark during the Asian session on Friday.
New
2025.11.07 13:21USD/CAD remains above 1.4100 near six-month highs despite decreasing Fed rate cut odds
USD/CAD continues its winning streak that began on October 30, trading around 1.4120 during the Asian hours on Friday. The pair remains near the six-month high of 1.4140, reached on November 5, as the US Dollar (USD) rebounds after posting losses in the previous session.
New
2025.11.07 12:55NZD/USD drifts lower below 0.5650 as China's Trade Surplus narrows in October
The NZD/USD pair attracts some sellers near 0.5620 during the Asian trading hours on Friday. The New Zealand Dollar (NZD) weakens against the US Dollar (USD) after a narrowing of China's trade surplus in October and a weak New Zealand jobs report.
New
2025.11.07 12:47Japanese Yen pulls back from over one-week top against USD on weaker domestic data
The Japanese Yen (JPY) retreats slightly from an over one-week high touched against the US Dollar (USD) during the Asian session on Friday, following the disappointing release of Japan's Household Spending data.
New
2025.11.07 11:28US Dollar Index rebounds after a sharp decline, Michigan Consumer Sentiment eyed
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is rebounding after losing nearly 0.5% in the previous session and trading around 99.80 during the Asian hours on Friday.
New
2025.11.07 11:24Australian Dollar inches lower ahead of China's Trade Balance data
Australian Dollar (AUD) declines against the US Dollar (USD) on Friday, extending its losses for the second successive session. The AUD/USD pair remains weaker ahead of China's Trade Balance data due later in the day.
New
2025.11.07 10:49WTI drifts higher above $59.50 on weaker US Dollar, fears of oil glut might cap its upside
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $59.60 during the Asian trading hours on Friday. The WTI recovers some lost ground on the weaker US Dollar (USD). However, the potential upside might be limited amid increasing excess supply concerns.
New
2025.11.07 10:37PBOC sets USD/CNY reference rate at 7.0836 vs. 7.0865 previous
The People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Friday at 7.0836 compared to the previous day's fix of 7.0865 and 7.1131 Reuters estimate.
New
2025.11.07 10:15When is the China Trade Balance and how could it affect AUD/USD?
The General Administration of Customs will publish its data for October on Friday at 03.00 GMT. Trade balance is expected to widen to $95.60B in October, compared to $90.45 in the previous reading. Exports are expected to rise by 3%, while Imports are projected to climb by 3.2%.
New
2025.11.07 10:00GBP/USD extends much-needed recovery as Cable recovers 1.31
GBP/USD climbed on Thursday, driven into the high side by over-extended bearish price action that has plagued the pair, as well as a surprisingly close Bank of England (BoE) vote on interest rate moves that gave investors hope that the BoE might be moving to support the UK's flagging economy despite
New
2025.11.07 09:15Disclaimer:
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
