Forex Today: US Dollar holds firm, Oil surges as Iran deadline keeps markets on edge
Here is what you need to know for Wednesday, April 8:
The US Dollar Index (DXY) held near 99.80, not far from last week’s 100 peak, broadly supported as markets remain locked on the Iran conflict and, in particular, on United States (US) President Donald Trump’s deadline for 8:00pm EST tied to the Strait of Hormuz. Tehran rejected a temporary ceasefire and has closed all communication lines with the US, setting conditions for any lasting peace deal, while Oil markets keep pricing in a prolonged disruption risk.
At the same time, US February core capital goods orders beat expectations at 0.6%, even as headline durable goods orders fell 1.4%, giving the Greenback an additional layer of support ahead of this week’s Federal Open Market Committee (FOMC) minutes and PCE inflation data.
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 | -0.34% | -0.23% | 0.05% | -0.08% | -0.53% | 0.00% | 0.07% | |
| EUR | 0.34% | 0.10% | 0.35% | 0.23% | -0.21% | 0.33% | 0.41% | |
| GBP | 0.23% | -0.10% | 0.25% | 0.14% | -0.29% | 0.24% | 0.32% | |
| JPY | -0.05% | -0.35% | -0.25% | -0.11% | -0.56% | -0.04% | 0.04% | |
| CAD | 0.08% | -0.23% | -0.14% | 0.11% | -0.45% | 0.06% | 0.15% | |
| AUD | 0.53% | 0.21% | 0.29% | 0.56% | 0.45% | 0.53% | 0.61% | |
| NZD | -0.00% | -0.33% | -0.24% | 0.04% | -0.06% | -0.53% | 0.10% | |
| CHF | -0.07% | -0.41% | -0.32% | -0.04% | -0.15% | -0.61% | -0.10% |
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 spiked to near the 1.1580 area, staying resilient even as the US Dollar (USD) remained firm. The Euro found support from rising expectations that the European Central Bank (ECB) may need to tighten policy if the Oil shock feeds into broader inflation, with ECB officials signaling readiness to act if price pressure becomes persistent.
GBP/USD climbed toward 1.3270, edging slightly higher on the day, but the British Pound still traded close to a more than four-month low versus the Greenback as investors worried about the United Kingdom’s (UK) exposure to imported energy and the country’s fragile fiscal backdrop.
USD/JPY stayed muted near 159.80, keeping the Yen close to levels that previously triggered Japanese intervention. Japan’s Finance Minister said Tokyo would remain in close contact with G7 peers as Oil-driven market volatility persists, while the 10-year JGB yield climbed to a 27-year high of 2.43%, underscoring the strain from surging energy costs and fiscal support measures.
AUD/USD traded around 0.6960, surging even as higher energy prices kept risk-sensitive currencies subdued. The surge came with the Reserve Bank of Australia’s (RBA) hawkish tilt from recent weeks still in the background.
West Texas Intermediate (WTI) Oil pushed higher toward the $117 per barrel earlier on Tuesday, but folded to $113.40 per barrel by the late afternoon. The broader Oil complex stayed extremely tight as the Hormuz crisis worsened, with some physical crude grades surging toward $150 per barrel and around 12 million barrels per day of supply effectively disrupted.
Gold was on a slight bullish bias near $4,680, showing a cautious tone rather than a fresh safe-haven surge. Bullion drew support from geopolitical uncertainty, but upside remained limited by the firm USD and concerns that higher oil prices could keep interest rates elevated for longer. China’s central bank extending its Gold-buying streak to 17 months, helping to underpin the metal.
What’s next in the docket:
Wednesday, April 8
- NZ RBNZ Press Conference
- EU Retail Sales
- EU Non-Monetary Policy ECB Meeting
- US FOMC Minutes
Thursday, April 9
- Germany 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
- Germany 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 Statemen
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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