FXToday: US Dollar falls as markets brace for central bank week and Iran headlines
Here is what you need to know for Tuesday, April 28:
The US Dollar Index (DXY) is trading cautiously near the 98.50 level as markets prepare for a busy week of central bank meetings. The Federal Reserve (Fed), European Central Bank (ECB), Bank of Japan (BoJ), and Bank of England (BoE) are all expected to keep interest rates unchanged, with forward guidance taking the spotlight.
Geopolitical developments are a key driver of market sentiment. Iran’s Foreign Minister, Abbas Araghchi, stated that Tehran is considering a request for negotiations from United States (US) President Donald Trump, claiming that Trump sought talks because the US “has not achieved any of its goals.” While this development slightly improves the diplomatic tone, markets remain cautious due to ongoing disruptions in the Strait of Hormuz, which continue to support rising Oil prices.
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 Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.00% | -0.02% | 0.03% | -0.34% | -0.51% | -0.51% | 0.08% | |
| EUR | 0.00% | -0.00% | 0.04% | -0.32% | -0.49% | -0.49% | 0.09% | |
| GBP | 0.02% | 0.00% | 0.02% | -0.34% | -0.51% | -0.51% | 0.10% | |
| JPY | -0.03% | -0.04% | -0.02% | -0.36% | -0.54% | -0.56% | 0.09% | |
| CAD | 0.34% | 0.32% | 0.34% | 0.36% | -0.18% | -0.20% | 0.41% | |
| AUD | 0.51% | 0.49% | 0.51% | 0.54% | 0.18% | 0.00% | 0.61% | |
| NZD | 0.51% | 0.49% | 0.51% | 0.56% | 0.20% | -0.01% | 0.61% | |
| CHF | -0.08% | -0.09% | -0.10% | -0.09% | -0.41% | -0.61% | -0.61% |
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 trades around the 1.1720 region, struggling for direction as traders await the ECB decision. The central bank is expected to hold rates, but markets will focus on whether President Christine Lagarde pushes back against rate-cut expectations amid higher energy prices.
GBP/USD hovers near the 1.3530 area, supported by a softer USD but limited by caution ahead of the BoE meeting. The BoE is also expected to stay on hold, with investors watching whether policymakers sound more concerned about inflation after the latest jump in energy prices.
USD/JPY fell toward the 159.40 price zone as the Japanese Yen (JPY) found support ahead of the BoJ policy decision. The BoJ is widely expected to deliver a hawkish hold, keeping rates unchanged at 0.75% while hinting at possible further tightening amid sticky inflation and a tightening labor market.
AUD/USD surged near the 0.7190 as investors moved away from the US Dollar (USD) amid stalled peace talks in the Middle East.
West Texas Intermediate (WTI) Oil holds firm near the $96.40 per barrel as stalled US-Iran talks and muted Strait of Hormuz shipments continue to fuel supply concerns.
Gold (XAU/USD) trades near the $4,683-per-ounce level, with investors shifting away from safe-haven demand amid easing Middle East tensions and pressure from higher-for-longer rate expectations ahead of the Fed decision.
What’s next in the docket:
Tuesday, April 28
- Japan BoJ Interest Rate Decision
- Japan BoJ Monetary Policy Statement
- Japan BoJ Outlook Report Q1
- Japan BoJ Press Conference
- Eurozone ECB Bank Lending Survey
- US ADP Employment Change (4-week average)
- US February Housing Price Index
- US April Consumer Confidence
Wednesday, April 29
- Australia March CPI (MoM, YoY)
- Australia Trimmed Mean CPI (MoM, YoY)
- Eurozone April Economic Sentiment Indicator
- Germany April CPI & HICP (Preliminary)
- Canada BoC Interest Rate Decision
- Canada BoC Monetary Policy Report & Statement
- Canada BoC Press Conference
- US Fed Interest Rate Decision
- US Fed Monetary Policy Statement
- US FOMC Press Conference
Thursday, April 30
- French Q1 GDP (Preliminary)
- Germany March Retail Sales
- Germany March Unemployment Rate
- United Kingdom BoE Interest Rate Decision
- United Kingdom BoE Minutes & Monetary Policy Report
- United Kingdom BoE MPC Vote Split
- Eurozone ECB Main Refinancing Rate
- Eurozone ECB Deposit Facility Rate
- Eurozone ECB Monetary Policy Statement
- Canada February GDP
- US Core PCE and PCE Inflation
- US Q1 GDP (Preliminary)
- US Employment Cost Index
- US Initial Jobless Claims
- US Personal Income and Spending
- Japan April Tokyo CPI
Friday, May 1
- Australia Q1 Producer Price Index
- Switzerland March Retail Sales
- Canada April Manufacturing PMI
- US ISM Manufacturing PMI
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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