Forex Today: US Dollar lifts off daily lows, Trump says Iran deal is signed
Here is what you need to know for Tuesday, June 16:
The US Dollar Index (DXY) lifted off 10-day lows to reach the 99.70 price zone even after Trump said it was “important that Oil is plummeting and stocks are rising.” However, caution remains as Trump also warned that there would be “no sanctions relief for Iran until they do what they are supposed to do.”
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 New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.18% | -0.02% | 0.06% | -0.01% | -0.34% | 0.20% | -0.28% | |
| EUR | 0.18% | 0.15% | 0.28% | 0.19% | -0.17% | 0.38% | -0.12% | |
| GBP | 0.02% | -0.15% | 0.11% | 0.03% | -0.32% | 0.25% | -0.28% | |
| JPY | -0.06% | -0.28% | -0.11% | -0.06% | -0.42% | 0.10% | -0.38% | |
| CAD | 0.00% | -0.19% | -0.03% | 0.06% | -0.34% | 0.18% | -0.31% | |
| AUD | 0.34% | 0.17% | 0.32% | 0.42% | 0.34% | 0.56% | 0.08% | |
| NZD | -0.20% | -0.38% | -0.25% | -0.10% | -0.18% | -0.56% | -0.51% | |
| CHF | 0.28% | 0.12% | 0.28% | 0.38% | 0.31% | -0.08% | 0.51% |
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 rose toward the 1.1580 level on Monday, but pulled back from resistance near 1.1620. Traders continue to assess the European Central Bank’s (ECB) policy path after recent signals that policymakers could remain cautious if energy prices stay contained.
GBP/USD is also trading even near the 1.3410 level, with the Pound’s upside limited as investors remain cautious ahead of upcoming UK economic data and Bank of England commentary.
USD/JPY trades higher near the 160.40 level as the Japanese Yen (JPY) remains unsupported by expectations around the Bank of Japan’s (BoJ) interest rate decision due on Tuesday.
AUD/USD rose on Monday to 0.7070, in anticipation of the Reserve Bank of Australia’s (RBA) interest rate decision on Tuesday.
West Texas Intermediate (WTI) Oil fell about 4% to the $81.50 level after Trump’s comments that the Strait of Hormuz had reopened.
Gold jumped more than 2% to $4,320 as easing geopolitical tensions are thought to allow central banks to return to buying the precious metal.
What’s next in the docket:
Tuesday, June 16:
- China Industrial Production (May)
- China Retail Sales (May)
- Japan BoJ Interest Rate Decision
- Australia RBA Interest Rate Decision
- Germany CPI (May)
- Germany ZEW Survey (Jun)
- US ADP Employment Change 4-week average
- Japan Trade Balance (May)
Wednesday, June 17:
- UK CPI (May)
- UK PPI (May)
- UK Retail Price Index (May)
- Eurozone HICP (May)
- US Fed Interest Rate Decision
- New Zealand GDP (Q1)
Thursday, June 18:
- Switzerland SNB Financial Stability Report
- UK Employment Data (Apr/May)
- Switzerland SNB Interest Rate Decision
- Germany Buba Monthly Report
- UK BoE Interest Rate Decision
- US Initial Jobless Claims
- US Philadelphia Fed Manufacturing Survey (Jun)
- New Zealand Westpac Consumer Survey (Q2)
- New Zealand Trade Balance (May)
- UK GfK Consumer Confidence (Jun)
- Japan National CPI (May)
- Japan BoJ Monetary Policy Meeting Minutes
Friday, June 19:
- Germany PPI (May)
- UK Retail Sales (May)
- Canada Retail Sales (Apr)
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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