Forex Today: US Dollar and Oil fall as Trump signals Iran de-escalation
Here is what you need to know for Tuesday, March 24:
The US Dollar Index (DXY) fell below the 100 mark on Monday and is now trading at 99.10, as improved risk appetite offsets support from steady yields and cautious expectations for the Federal Reserve. Markets kicked off the week with a positive tone after United States (US) President Donald Trump announced a postponement of planned strikes on Iran's energy infrastructure and pointed to “major points of agreement” in ongoing talks.
Trump's post triggered a sharp decline in Oil prices, even as Iranian officials downplayed the prospect of negotiations, claiming no talks have been held with the United States.
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 | -0.34% | -0.65% | -0.60% | -0.01% | 0.20% | -0.46% | -0.19% | |
| EUR | 0.34% | -0.31% | -0.26% | 0.31% | 0.67% | -0.14% | 0.14% | |
| GBP | 0.65% | 0.31% | 0.04% | 0.64% | 0.98% | 0.17% | 0.44% | |
| JPY | 0.60% | 0.26% | -0.04% | 0.61% | 0.81% | 0.07% | 0.41% | |
| CAD | 0.01% | -0.31% | -0.64% | -0.61% | 0.19% | -0.58% | -0.23% | |
| AUD | -0.20% | -0.67% | -0.98% | -0.81% | -0.19% | -0.79% | -0.39% | |
| NZD | 0.46% | 0.14% | -0.17% | -0.07% | 0.58% | 0.79% | 0.31% | |
| CHF | 0.19% | -0.14% | -0.44% | -0.41% | 0.23% | 0.39% | -0.31% |
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).
EUR/USD is trading near the 1.1630 price region, rising by over 0.50% to two-week highs as the Euro (EUR) is supported by a steady outlook from the European Central Bank (ECB).
GBP/USD surged sharply to 1.3479 in the European session, and declined slightly to 1.3430, still with gains of 0.80% amid broad US Dollar (USD) weakness.
USD/JPY plummeted to the 158.40 level as a weaker US Dollar loses ground to a firmer Japanese Yen (JPY), which is being supported by the Bank of Japan (BoJ), which continues to draw attention after Governor Kazuo Ueda reiterated that further rate hikes remain possible if inflation evolves as projected .
AUD/USD is trading in a tight range near 0.7010 after reaching an almost two-month low in the Asian session at 0.6910. The Australian flash March PMIs will be released at the start of the Asian session on Tuesday.
West Texas Intermediate (WTI) Oil fell from $100 to $87.70 per barrel as Trump requested resolution talks, giving investors room to breathe and play their cards in other positions.
Gold recovers and posts mild losses, trading near $4,450 after hitting a three-month low of $4,098 earlier in the day. The yellow metal staged a solid comeback following Trump's announcement on Iran strikes.
What’s next in the docket:
Tuesday, March 24:
- Eurozone HCOB PMIs (Mar) Prel.
- United Kingdom S&P Global PMIs (Mar) Prel.
- United States ADP Employment Change.
- United States Nonfarm Productivity & Unit Labor Costs (Q4).
- United States S&P Global PMIs (Mar) Prel.
- Japan BoJ Monetary Policy Meeting Minutes.
Wednesday, March 25:
- Australia Consumer Price Index (Feb).
- United Kingdom Inflation Data (CPI, PPI, RPI).
- Switzerland ZEW Survey – Expectations (Mar).
- Germany IFO Business Climate (Mar).
- Switzerland SNB Quarterly Bulletin (Q1).
Thursday, March 26:
- Germany GfK Consumer Confidence (Apr).
- Eurozone Gross Domestic Product (Q4).
- Germany Bundesbank Monthly Report.
- United States Initial Jobless Claims.
- New Zealand ANZ – Roy Morgan Consumer Confidence (Mar).
Friday, March 27:
- UK March Consumer Confidence.
- UK February Retail Sales.
- Eurozone March Harmonized Index of Consumer Prices Prel.
- US March Michigan Consumer Sentiment & Inflation Expectations.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
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