Forex Today: US Dollar steadies ahead of key US CPI data as markets monitor Iran tensions
Here is what you need to know for Tuesday, May 12:
The US Dollar Index (DXY) is holding firm near the 97.95 region as investors remain cautious despite some improvement in overall market sentiment and ongoing geopolitical tensions in the Middle East. Investors reacted after United States (US) President Donald Trump rejected Iran’s latest peace proposal, calling it “totally unacceptable.” Traders are now shifting focus toward Tuesday’s US Consumer Price Index (CPI) report.
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 Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.04% | 0.15% | 0.35% | 0.02% | -0.06% | 0.07% | 0.19% | |
| EUR | -0.04% | 0.11% | 0.28% | -0.05% | -0.08% | 0.04% | 0.16% | |
| GBP | -0.15% | -0.11% | 0.17% | -0.17% | -0.20% | -0.07% | 0.04% | |
| JPY | -0.35% | -0.28% | -0.17% | -0.33% | -0.37% | -0.25% | -0.15% | |
| CAD | -0.02% | 0.05% | 0.17% | 0.33% | -0.04% | 0.03% | 0.18% | |
| AUD | 0.06% | 0.08% | 0.20% | 0.37% | 0.04% | 0.11% | 0.24% | |
| NZD | -0.07% | -0.04% | 0.07% | 0.25% | -0.03% | -0.11% | 0.14% | |
| CHF | -0.19% | -0.16% | -0.04% | 0.15% | -0.18% | -0.24% | -0.14% |
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 rebounded toward the 1.1780 region, benefiting from a slightly softer US Dollar (USD) amid reduced defensive positioning. The pair also finds support from improving risk appetite and expectations that the European Central Bank (ECB) may remain cautious about cutting rates too aggressively.
GBP/USD advances near the 1.3615 area, supported by stabilizing market sentiment and modest USD consolidation.
USD/JPY trades near the 157.20 zone, with the Japanese Yen (JPY) losing ground due to Trump’s rejection of Iran’s proposal, which will further impact Oil supply.
AUD/USD climbs toward the 0.7250 region as improving risk sentiment boosts demand for commodity-linked currencies.
West Texas Intermediate (WTI) Oil remains elevated near the $98.00 per barrel mark as markets continue to monitor tensions in the Strait of Hormuz and potential risks to global energy supplies.
Gold rises toward the $4,730 region, supported by ongoing geopolitical uncertainty and cautious positioning ahead of the US CPI release.
What’s next in the docket:
Tuesday, May 12:
- AU May Westpac Consumer Confidence
- EU April HICPs
- DE May ZEW Survey Current Situation; DE May ZEW Survey Economic Sentiment
- AU Budget Release
- US ADP Employment Change 4-week average
- US April CPIs; US April Core CPIs
- US April Monthly Budget Statement
- JP March Current Account n.s.a.
Wednesday, May 13:
- AU Q1 Wage Price Index QoQ
- NZ Q2 RBNZ Inflation Expectations QoQ
- FR April CPI EU norm YoY
- EU Q1 Employment Change QoQ Prel
- EU Q1 GDP s.a. QoQ Prel; EU Q1 GDP s.a. YoY Prel
- EU March Industrial Production s.a. MoM
- US April PPIs; US April Core PPIs
Thursday, May 14:
- AU May Consumer Inflation Expectations
- UK March GDP MoM; UK Q1 GDP QoQ Prel; UK Q1 GDP YoY Prel
- UK March Industrial Production MoM; UK March Manufacturing Production MoM
- DE April HICP YoY
- US Initial Jobless Claims
- US April Retail Sales MoM; US April Retail Sales Control Group; US April Retail Sales ex Autos MoM
- NZ April Business NZ PMI
Friday, May 15:
- FR April CPI EU norm YoY; FR April CPI YoY
- US May NY Empire State Manufacturing Index
- US April Industrial Production MoM
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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