Forex Today: US Dollar stalls as Middle East tensions linger
Here is what you need to know for Thursday, April 16:
The US Dollar Index (DXY) struggled to build on recent gains, trading near 98.10 on Tuesday in a tight range as mixed US data and conflicting signals from yields capped momentum. While safe-haven demand initially supported the US Dollar (USD), the move faded as US yields stabilized and investors showed reluctance to extend long USD positions without fresh catalysts.
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 | -0.02% | -0.03% | 0.16% | -0.29% | -0.72% | -0.22% | 0.10% | |
| EUR | 0.02% | -0.01% | 0.21% | -0.27% | -0.63% | -0.20% | 0.12% | |
| GBP | 0.03% | 0.00% | 0.22% | -0.23% | -0.61% | -0.19% | 0.13% | |
| JPY | -0.16% | -0.21% | -0.22% | -0.44% | -0.81% | -0.41% | -0.08% | |
| CAD | 0.29% | 0.27% | 0.23% | 0.44% | -0.36% | 0.06% | 0.37% | |
| AUD | 0.72% | 0.63% | 0.61% | 0.81% | 0.36% | 0.42% | 0.75% | |
| NZD | 0.22% | 0.20% | 0.19% | 0.41% | -0.06% | -0.42% | 0.32% | |
| CHF | -0.10% | -0.12% | -0.13% | 0.08% | -0.37% | -0.75% | -0.32% |
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 in a neutral range near the 1.1800 area, benefiting from the USD’s lack of follow-through. The pair remains supported by stable Eurozone expectations, although upside is limited as the European Central Bank (ECB) maintains a cautious tone amid inflation concerns.
GBP/USD holds steady around the 1.3570 price region, with the Pound finding some footing despite ongoing concerns about UK growth and inflation persistence. Bank of England (BoE) expectations remain finely balanced, preventing sharp moves in either direction.
USD/JPY trades in the green with a softer tone above the 159.00 mark as the Japanese Yen (JPY) draws intermittent support from safe-haven flows.
AUD/USD surges above the 0.7170 level as traders look ahead to Australia’s March employment report due Thursday. Expectations point to a 20K increase in jobs and a steady 4.3% Unemployment Rate.
West Texas Intermediate (WTI) Oil remains volatile, recovering almost all its intraday losses now trading near the $91.20 per barrel, as concerns over supply disruptions tied to the Strait of Hormuz persist.
Gold trades around the $4,795 after dropping below the $4,870 level, supported by geopolitical uncertainty but capped by stable yields.
What’s next in the docket:
Thursday, April 16:
- US IMF Meeting
- AU Employment Change March
- AU Unemployment Rate March
- CN GDP Q1
- CN Industrial Production March
- CN Retail Sales March
- UK GDP February
- UK Industrial Production February
- UK Manufacturing Production February
- Italian CPIs March
- Eurozone Harmonized Index of Consumer Prices March
- ECB Monetary Policy Meeting Accounts
- US Initial Jobless Claims
- US Philadelphia Fed Manufacturing Survey April
- US Industrial Production March
Friday, April 17:
- US IMF Meeting
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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