US Dollar (USD)

United States — Federal Reserve

World reserve currency and the unit of account for global trade and commodities.

FX Session:
New York
EUR/USD
1.17000
EUR/USD Exchange Rate
Economic Indicators
Indicator Latest Previous Change Date
Policy Rate 4.25 4.0 +0.25 2025-09-18
Inflation 2.4 2.7 -0.30 2025-05-31
Core Inflation 2.8 2.9 -0.10 2025-05-31
Gdp 7510528.25 7621432.25 -110904.00 2025-05-31
Unemployment 4.3 4.1 +0.20 2025-05-31
Trade Balance -70564.0 -57637.0 -12927.00 2025-05-31
Retail Sales -0.8 1.0 -1.80 2025-05-31
Ppi 2.7 2.6 +0.10 2025-05-31
Federal Reserve Press Releases
CFTC Commitment of Traders — USD

About the US Dollar (USD)

The US dollar (USD) is the world's primary reserve currency and the most actively traded unit in foreign exchange markets, appearing on one side of roughly nine out of every ten FX transactions. It is issued by the United States and managed by the Federal Reserve, with money-market dynamics that ripple through every other major currency.

Federal Reserve: monetary policy framework

The Federal Reserve sets the federal funds target rate through the Federal Open Market Committee (FOMC), which holds eight scheduled meetings per year. Its dual mandate is maximum employment and price stability, with a long-run inflation goal of 2% measured by the core PCE deflator. Decisions are accompanied by a Summary of Economic Projections (SEP) and 'dot plot' four times a year.

What moves the USD?

  • Federal Reserve policy rate path and balance-sheet (QT/QE) signalling.
  • US Treasury yields, especially the 2-year and 10-year, and real-yield differentials.
  • Non-Farm Payrolls, unemployment rate, average hourly earnings, and JOLTS job openings.
  • CPI, core CPI, PCE and core PCE inflation prints.
  • Risk sentiment — USD historically strengthens in global risk-off episodes.
  • Global commodity prices (most are USD-denominated) and the broad DXY trade-weighted index.

Key data and events to watch

  • Monthly NFP (first Friday) and CPI release.
  • FOMC statement, press conference, and SEP/dot plot.
  • ISM Manufacturing and ISM Services PMIs.
  • Initial jobless claims (weekly) for high-frequency labour-market signal.
  • Treasury auction results and refunding announcements.

Frequently asked questions about the US Dollar

Why is the US dollar the world's reserve currency?
The US dollar's reserve status reflects the size and openness of the US economy, the depth and liquidity of US Treasury markets, the global use of dollars to invoice commodities and trade, and the network effect of central banks holding USD reserves. Roughly 58% of global FX reserves and 88% of FX trades involve the dollar.
What economic data moves the US dollar the most?
The biggest scheduled USD movers are the FOMC decision, CPI, Non-Farm Payrolls, and core PCE. Off-cycle, surprises in retail sales, ISM PMIs, and Treasury yields can also drive sharp moves.
How does the Federal Reserve set US interest rates?
The FOMC votes on a target range for the federal funds rate at eight scheduled meetings per year. Decisions reflect the Fed's dual mandate of maximum employment and 2% inflation, and are implemented through interest on reserve balances, the overnight reverse repo rate, and open-market operations.
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