US dollar today
What’s happening:-
The US dollar gave back gains this morning after President Donald Trump fired Federal Reserve governor Lisa Cook.
What happened:-
The US dollar index had risen after Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole raised speculations of an interest rate cut in September.
The greenback fell this morning on news that Trump had removed Fed governor Cook, citing allegations of mortgage fraud, which raised concerns around the central bank’s independence.
Why it matters:-
During his speech on Friday, Federal Reserve Chairman Jerome Powell indicated an upcoming interest rate cut at the central bank’s September meeting. Prospects of a rate cut helped the US dollar record its biggest daily surge of the month on Monday.
The latest move by Donald Trump to fire Lisa Cook signals a sharp escalation of his battle against the central bank, after he repeatedly blamed the Fed for not cutting rates quickly enough. This also raised concerns around the Fed’s independence and its ability to conduct monetary policy without government interference.
US dollar declines as Trump removes Fed governor
The EUR/USD forex pair gained around 0.2% to 1.1648, while the GBP/USD rose about 0.2% to 1.3476. The USD/JPY declined 0.3% to 147.34.
What to watch:-
The Fed’s preferred gauge to measure inflation, the PCE price index, will be released on Friday.Data on durable goods orders, consumer confidence and the Case-Shiller home price index are scheduled to be released today. Durable goods orders in the US, which dipped 9.3% to $311.84 billion in June, are expected to decline by 4% in July. Analysts expect the S&P CoreLogic Case-Shiller home price index to climb by 2.2% year-over-year in June, easing from 2.8% in May, while the consumer confidence index is projected to decline to 96.4 in August from 97.2 in the previous month.
Gold shines brighter as US dollar falls
Why it matters:-
US President Donald Trump recently met with Ukraine’s President Volodymyr Zelensky and European leaders to discuss ending the ongoing war with Russia. Trump announced that he had spoken with Russia’s President Vladimir Putin following the meeting.
Meanwhile, Russia said that attempts to discuss security issues related to Ukraine without the Russian Federation are a “road to nowhere.”
The US dollar moved lower on Wednesday after Trump called on Fed Governor Lisa Cook to resign, intensifying his efforts to gain control over the central bank.
Trump has been urging Fed Chairman Jerome Powell to cut interest rates to stimulate the economy, while Powell has held back citing inflationary concerns due to the aggressive tariff policies. Investors expect a more dovish appointment by Trump following the end of Powell’s term in May.
Meanwhile, Goldman Sachs maintained its mid-2026 gold forecast of $4,000 per ounce amid strong demand by central banks and ETF inflows.
Weakness in the US dollar lent support to gold on Wednesday, as a lower greenback makes metals more affordable for foreign currency holders. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell to 98.22.
Gold shines as dollar declines
Gold prices gained 0.9% to close at $3,388.50 an ounce on Wednesday.
In other metals trading, silver surged to $37.773 an ounce, copper rose to $4.44 and platinum climbed to $1,341.6, while palladium settled at $1,121.40.
What to watch:-
Investors awaited Powell’s speech at the Fed’s annual Jackson Hole symposium for insights into future interest rate cuts. Ongoing talks to end the Russia-Ukraine war will also remain in focus.
Data on initial jobless claims (1630 UAE Time), S&P Global manufacturing PMI (1745 UAE Time) and services PMI (1745 UAE Time) from the US will be released today. Initial jobless claims in the US, which fell by 3,000 from the previous week to 224,000 in the first week of August, are expected to rise to 225,000 in the latest week. Analysts expect the S&P Global US manufacturing to decline to 49.5 in August from 49.8 in July, while the services PMI is projected to ease to 54.2 in August from 55.7 in July.