Forex Today: US Dollar jumps, Gold slumps eyeing Trump’s Fed Chair pick
Here is what you need to know on Friday, January 30:
The latest political and geopolitical headlines surrounding US President Donald Trump dominated markets early Friday, with all eyes on the announcement of his Federal Reserve (Fed) Chair pick.
According to Bloomberg, the Trump administration is preparing to nominate former Fed Governor Kevin Warsh to be the next Chair as early as in American morning on Friday.
Meanwhile, a Wall Street Journal (WSJ) report said that President Trump and Senate Democrats struck a deal to avert a government shutdown.
This story, combined with profit-taking and the Fed’s recent cautious on-hold interest rate decision poured some life into the US Dollar (USD), lifting it from four-year lows against its major currency rivals.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.35% | 0.38% | 0.55% | 0.26% | 0.77% | 0.53% | 0.37% | |
| EUR | -0.35% | 0.03% | 0.18% | -0.09% | 0.42% | 0.18% | 0.01% | |
| GBP | -0.38% | -0.03% | 0.17% | -0.12% | 0.39% | 0.15% | -0.01% | |
| JPY | -0.55% | -0.18% | -0.17% | -0.29% | 0.22% | -0.03% | -0.19% | |
| CAD | -0.26% | 0.09% | 0.12% | 0.29% | 0.51% | 0.26% | 0.11% | |
| AUD | -0.77% | -0.42% | -0.39% | -0.22% | -0.51% | -0.24% | -0.41% | |
| NZD | -0.53% | -0.18% | -0.15% | 0.03% | -0.26% | 0.24% | -0.16% | |
| CHF | -0.37% | -0.01% | 0.01% | 0.19% | -0.11% | 0.41% | 0.16% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Despite the comeback, the Greenback is on track for its second straight weekly slide, heavily undermined by Trump’s erratic international policies and attacks on the Fed’s independence.
Trump on Thursday threatened to impose a 50% tariff on all aircraft sold from Canada into the United States (US), accusing Canada of unfairly blocking certification of Gulfstream business jets.
Citing Trump, Reuters reported on Thursday that he plans to speak with Iran, even as the Pentagon prepares for possible military action and the United States increases its naval presence in the Middle East.
Additionally, the White House said that Trump signed an executive order that would impose tariffs on countries that provide oil to Cuba.
Looking ahead, the focus remains on Trump’s nomination of the next Fed Chair and the US Producer Price Index (PPI) data for the next direction in the Greenback.
Ahead of that, the preliminary German and Eurozone Gross Domestic Product (GDP) reports for the fourth quarter of 2025 will grab some attention.
Across the G10 currency space, AUD/USD stays deep in the red below 0.7000 amid profit taking ahead of next week’s likely Reserve Bank of Australia (RBA) interest rate hike.
USD/JPY flirts with 154.00 as the Japanese Yen (JPY) holds softer Tokyo CPI-inspired losses amid reduced bets for an early interest rate hike by the Bank of Japan (BoJ).
EUR/USD trims losses to regain 1.1900, but sellers remain in control ahead of key German/ Eurozone GDP data.
GBP/USD holds correction at around 1.3750, pressured by the ongoing USD recovery.
Gold falls nearly 4% to trade near $5,200 in early Europe, having tested the $5,100 threshold in the Asian session.
WTI extends the pullback from five-month highs of $66.25, currently trading around $64, as Trump seems open to talk to Iran.
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.
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
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