Forex Today: US Dollar firms after Fed hawkish hold
Here is what you need to know for Thursday, March 19:
The Federal Reserve (Fed) held interest rates at 3.50%-3.75% at its monetary policy meeting on Wednesday. The decision was widely expected by markets, but the hawkish tone of Chair Jerome Powell and the Summary of Economic Projections (SEP), with only two rate cuts projected for 2026 and 2027, lifted the US Dollar. At the press conference, Powell claimed, “Near-term higher energy prices will push up overall inflation,” and said that if he doesn't see progress on inflation, it's hard to cut rates.
Meanwhile, market players remain cautious amid the Middle East war, which has spiked energy prices.
The US Dollar Index (DXY) is surging above the 100 price region after the Fed’s decision to hold interest rates. Additionally, the United States Producer Price Index (PPI) rose by 3.9% YoY from the expected 3.7%. This is more worrying than it seems as higher energy prices are not included in this month’s report.
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 | 0.62% | 0.59% | 0.51% | 0.27% | 1.01% | 0.96% | 1.03% | |
| EUR | -0.62% | -0.03% | -0.11% | -0.35% | 0.37% | 0.32% | 0.39% | |
| GBP | -0.59% | 0.03% | -0.08% | -0.34% | 0.41% | 0.35% | 0.42% | |
| JPY | -0.51% | 0.11% | 0.08% | -0.26% | 0.49% | 0.42% | 0.47% | |
| CAD | -0.27% | 0.35% | 0.34% | 0.26% | 0.73% | 0.67% | 0.74% | |
| AUD | -1.01% | -0.37% | -0.41% | -0.49% | -0.73% | -0.06% | 0.03% | |
| NZD | -0.96% | -0.32% | -0.35% | -0.42% | -0.67% | 0.06% | 0.06% | |
| CHF | -1.03% | -0.39% | -0.42% | -0.47% | -0.74% | -0.03% | -0.06% |
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 is trading near the 1.1480 price zone, trending down as the Greenback firms after the Fed’s interest rate decision. Focus now shifts to the European Central Bank (ECB) interest rate decision on Thursday, with markets expecting the ECB to also hold rates.
GBP/USD fell near the 1.3290 price zone after two straight days of gains as the pair awaits the Bank of England (BoE) monetary policy decision on Thursday.
USD/JPY is trading close to 160, reaching its highest level since July 2024. The Bank of Japan (BoJ) will reveal its interest rate decision in the Asian session on Thursday.
USD/CAD is trading near the 1.3720 price region, rising for two consecutive days amid Powell comments as the USD strengthens. Meanwhile, the Bank of Canada (BoC) held its interest rate steady at 2.25%, with Governor Tiff Macklem signaling a wait-and-see stance on the press conference after the decision, weighing on the Canadian Dollar (CAD).
West Texas Intermediate (WTI) Oil is trading at $99 per barrel, up 4%, with a mildly bullish bias that has been keeping the Oil on a two-day winning streak amid rising Middle East war tensions.
What’s next in the docket:
Thursday, March 19
- AUD Employment Change s.a. (Feb)
- JPY BoJ Interest Rate Decision
- UK Employment Change (3M) (Jan)
- UK BoE Interest Rate Decision
- CHF SNB Interest Rate Decision
- EUR ECB Interest Rate Decision
- USD Initial Jobless Claims
- USD Philadelphia Fed Manufacturing Survey (Mar)
- USD New Home Sales Change (MoM) (Jan
- NZD Trade Balance NZD (YoY) (Feb)
Friday, March 20
- CNY PBoC Interest Rate Decision
- German Producer Price Index (YoY) (Feb)
- CAD Retail Sales (MoM) (Jan)
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.
