Forex Today: US Dollar slips on Iran ceasefire hopes as Oil stays elevated and Gold steadies
Here is what you need to know for Tuesday, April 7:
The US Dollar Index (DXY) fell towards the 100.00 area on Monday as markets were weighed by United States (US) President Donald Trump’s latest Strait of Hormuz ultimatum against growing hopes for a ceasefire framework between the US and Iran. Those de-escalation hopes softened the Greenback’s haven appeal, even as the broader macro backdrop remained supportive, driven by elevated oil prices and a more cautious Federal Reserve outlook.
Later in the day, the US ISM Services PMI showed growth slowed to 54 in March from 56.1, while prices paid jumped sharply, reinforcing concerns that war-related energy shocks are feeding inflation.
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 | -0.27% | -0.32% | -0.03% | -0.24% | -0.41% | -0.45% | -0.26% | |
| EUR | 0.27% | -0.02% | 0.22% | 0.04% | -0.15% | -0.19% | -0.01% | |
| GBP | 0.32% | 0.02% | 0.25% | 0.04% | -0.11% | -0.18% | 0.02% | |
| JPY | 0.03% | -0.22% | -0.25% | -0.20% | -0.40% | -0.45% | -0.27% | |
| CAD | 0.24% | -0.04% | -0.04% | 0.20% | -0.17% | -0.21% | -0.05% | |
| AUD | 0.41% | 0.15% | 0.11% | 0.40% | 0.17% | -0.06% | 0.13% | |
| NZD | 0.45% | 0.19% | 0.18% | 0.45% | 0.21% | 0.06% | 0.19% | |
| CHF | 0.26% | 0.01% | -0.02% | 0.27% | 0.05% | -0.13% | -0.19% |
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 surged near the 1.1550 region, but upside remained capped after bouncing from intraday lows. The pair found support as improving sentiment around a possible Iran ceasefire undermined the Greenback, although gains were limited as traders stayed cautious ahead of further news from the Iran war.
GBP/USD climbed toward the 1.3240 zone, posting solid gains as the Pound benefited from a softer US Dollar. Cable drew support from reports of possible de-escalation in the Middle East, even as Trump insisted that Tuesday’s deadline for Iran to make a deal remained final.
USD/JPY trades muted after being highly volatile early in the day near the 159.70 area as the Japanese Yen (JPY) found some support from the weaker Dollar and renewed focus on potential Japanese intervention near the 160.00 threshold.
AUD/USD advanced toward the 0.6920 region, with the Aussie outperforming as risk-sensitive assets gained on hopes that US-Iran negotiations could eventually bring the conflict closer to a truce.
West Texas Intermediate (WTI) Oil remains elevated above the $112.00 mark, trading neutral at the time of writing. Crude stayed underpinned by the ongoing Strait of Hormuz disruption and Trump’s threat to intensify strikes if the waterway is not reopened, though ceasefire headlines and OPEC+’s agreement to boost May’s output helped prevent an even sharper rally.
Gold hovers around the $4,660 area, little changed on the day after earlier weakness. Bullion remained underpinned as investors headed for riskier assets late in the American session.
What’s next in the docket:
Tuesday, April 7
- Australia TD-MI Inflation Gauge March YoY
- EU HCOB PMIs
- EU Sentix Investor Confidence
- US Durable Goods Orders
- Canadian Ivey PMI
- JPY Labor Cash Earnings
- JPY Current Account
- NZ RBNZ Interest Rate Decision
- NZ RBNZ Monetary Policy Review
Wednesday, April 8
- NZ RBNZ Press Conference
- EU Retail Sales
- EU Non-Monetary Policy ECB Meeting
- US FOMC Minutes
Thursday, April 9
- EUR Trade Balance
- US PCE Price Index
- US GDP
- US Initial Jobless Claims
- US Personal Income
- US Personal Spending
- NZ Business NZ PMI
- CNY CPI
- CNY PPI
Friday, April 10
- EU Harmonized Index of Consumer Prices
- Canadian Employment data
- US CPI
- US Factory Orders
- US Michigan Consumer Index’s
- US UoM 1-year Consumer Inflation Expectations
- US UoM 5-year Consumer Inflation Expectation
- US Monthly Budget Statement
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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