Forex Today: US Dollar extends slide as softer US data and Iran optimism reshape markets
Here is what you need to know on Wednesday, April 15:
The US Dollar Index (DXY) fell toward the 98.10 region, reaching multi-week lows as softer inflation data and improving global sentiment led to a broad sell-off of the Greenback. Declining Oil prices and easing yields further contributed to the downward pressure. Optimism surrounding potential negotiations between the United States and Iran has sparked a widespread risk-on move, decreasing demand for safe-haven assets and causing the Greenback to decline.
Meanwhile, the United States (US) economic data presented a mixed but ultimately negative signal. The Producer Price Index (PPI) held steady at 3.8%YoY in March, matching the previous report’s figure, reinforcing the notion that inflation pressures, excluding energy, are not accelerating as feared.
Additionally, labor market dynamics indicated resilience rather than weakness. The 4-week average of ADP Employment Change rose to around 39K from 26K, highlighting a steady underlying jobs trend and suggesting that the US economy is not sharply deteriorating despite geopolitical tensions.
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 Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.29% | -0.43% | -0.43% | -0.15% | -0.44% | -0.62% | -0.35% | |
| EUR | 0.29% | -0.14% | -0.13% | 0.15% | -0.15% | -0.34% | -0.08% | |
| GBP | 0.43% | 0.14% | 0.02% | 0.30% | -0.02% | -0.19% | 0.07% | |
| JPY | 0.43% | 0.13% | -0.02% | 0.29% | -0.00% | -0.19% | 0.07% | |
| CAD | 0.15% | -0.15% | -0.30% | -0.29% | -0.30% | -0.46% | -0.20% | |
| AUD | 0.44% | 0.15% | 0.02% | 0.00% | 0.30% | -0.17% | 0.07% | |
| NZD | 0.62% | 0.34% | 0.19% | 0.19% | 0.46% | 0.17% | 0.26% | |
| CHF | 0.35% | 0.08% | -0.07% | -0.07% | 0.20% | -0.07% | -0.26% |
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 rallied above 1.1790, supported by sustained USD weakness and improving risk appetite. The pair is benefiting from the de-escalation narrative and expectations that US inflation may not force the Federal Reserve (Fed) to tighten further.
GBP/USD moved higher toward 1.3570. The Sterling is riding the USD downtrend, although gains remain somewhat cautious as global growth risks tied to the Iran war persist.
USD/JPY fell sharply toward the 158.80 region, driven by a weaker USD and a firmer Japanese Yen (JPY), with additional support coming from expectations that the Bank of Japan (BoJ) could revise its inflation outlook higher and continue policy normalization.
AUD/USD climbed toward recent highs at 0.7130 as the risk-on tone dominated markets. The Australian Dollar (AUD) is benefiting from improved sentiment and falling Oil prices.
West Texas Intermediate (WTI) Oil prices declined notably, dropping below the $91.65 per barrel range as markets priced in a potential easing of supply disruptions tied to the Iran conflict. The move reflects optimism around negotiations despite the still fragile situation.
Gold remains supported but lacks strong upside momentum at $4,836. A weaker USD is providing a floor, but easing geopolitical fears and falling Oil prices are limiting further gains.
What’s next in the docket:
Wednesday, April 15:
- US IMF Meeting
- France CPI March
- Eurozone Industrial Production February
- US NY Empire State Manufacturing Index April
- US Fed Beige Book
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.
Author
Agustin Wazne
FXStreet
Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.
