Forex Today: US Dollar firms on Hormuz jitters ahead of UK CPI and FOMC Minutes

Agustin Wazne FXStreet

Here is what you need to know on Wednesday, August 19:

The US Dollar Index (DXY) held a firm tone near the 99.60s on Tuesday, keeping a mild safe-haven bid as tensions around the Strait of Hormuz stayed front and center. Gold and Oil both sold off, and most major currencies drifted lower against the Greenback. Attention now turns to a busy Wednesday, led by United Kingdom (UK) inflation, a raft of Eurozone data and the Federal Open Market Committee (FOMC) Minutes.

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		0.01%	0.05%	0.10%	0.14%	0.23%	0.46%	0.18%
EUR	-0.01%		0.04%	0.09%	0.12%	0.23%	0.43%	0.18%
GBP	-0.05%	-0.04%		0.04%	0.09%	0.21%	0.41%	0.12%
JPY	-0.10%	-0.09%	-0.04%		0.05%	0.14%	0.36%	0.08%
CAD	-0.14%	-0.12%	-0.09%	-0.05%		0.09%	0.32%	0.03%
AUD	-0.23%	-0.23%	-0.21%	-0.14%	-0.09%		0.21%	-0.04%
NZD	-0.46%	-0.43%	-0.41%	-0.36%	-0.32%	-0.21%		-0.28%
CHF	-0.18%	-0.18%	-0.12%	-0.08%	-0.03%	0.04%	0.28%

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).

Iran's top negotiator repeated that the Strait of Hormuz will stay closed until Washington meets the conditions of the now-expired interim deal, while US President Donald Trump insisted in a social media post that the waterway is open and operating and that no talks with Tehran are scheduled. A vessel was reportedly struck by an unknown projectile in the Strait earlier in the day, keeping a geopolitical premium under the currency.

EUR/USD traded on the soft side, holding a narrow range around the 1.1580 zone as the US Dollar kept the upper hand. The pair now looks to a busy European morning come Wednesday, with Eurozone final Harmonized Index of Consumer Prices (HICP) figures for July and a scheduled speech from European Central Bank (ECB) President Christine Lagarde.

GBP/USD edged lower, treading water around the mid-1.3500s ahead of the session's marquee release. The UK Consumer Price Index (CPI) for July lands early Wednesday, with the headline annual rate expected to tick higher. A hot print would revive bets on Bank of England (BoE) rate hikes and could give the Pound a lift, while a soft one would leave Sterling exposed.

USD/JPY firmed with the Dollar's safe-haven bid favoring the Greenback over the Japanese Yen and nudging the pair toward the 159.60 zone, within reach of the 160.00 handle. Japan's July trade figures are due late in the day.

AUD/USD was among the weaker majors, sliding toward the 0.7080 zone as the risk-off tilt and a firm Dollar took their toll. The Aussie faces a packed Asia-Pacific session on Wednesday, headlined by Australian employment data, alongside Consumer Inflation Expectations and the People's Bank of China (PBoC) rate decision.

Gold retreated sharply, pulling back over 1% toward the $4,350 zone despite the risk backdrop as a firmer Dollar and profit-taking weighed on the metal.

West Texas Intermediate (WTI) Crude Oil remained on the front foot but eased off the early session highs toward the $84.00 area as traders weighed conflicting signals over whether the waterway is actually passable.

Later in the North American session, the Federal Reserve (Fed) releases the Minutes of its latest policy meeting, which traders will comb for any fresh steer on the rate path.

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

GBP/USD turns negative; slips back to 1.3530

GBP/USD comes under pressure and weakens toward the 1.3530 zone on Tuesday. Cable thus leaves behind two daily upticks in a row and retreats further from Monday’s multi-week tops past 1.3570 following humble gains in the Greenback and disheartening UK jobs data.

EUR/USD comes under pressure near 1.1570

EUR/USD could not sustain the earlier bullish attempt toward the proximity of 1.1600 the figure, coming under fresh downside pressure and revisiting the 1.1580-1.1570 band as the NA session draws to a close on Tuesday. The better tone in the US Dollar in the latter part of the day weighs on the pair amid steady volatility in the Middle East. Looking forward, the release of the FOMC Minutes takes centre stage on Wednesday.

Gold remains offered around $4,350

Gold accelerates its daily correction and revisits the $4,350 zone per troy ounce on Tuesday. The precious metal sets aside two daily advances in a row and follows the absence of direction in the US Dollar, declining US Treasury yields across the curve and continuous uncertainty in the Middle East crisis.

HYPE extends gains as Hyperliquid urges SEC action on pre-IPO futures framework

Hyperliquid (HYPE) retains a broad bullish outlook, trading above $59.00 on Tuesday. The decentralized exchange (DEX) native token marks the second consecutive day of gains as bulls return, eyeing a short-term breakout above $60.00.

Fiscal concerns and doubts on Fed independence send US yields to long-term highs

US Treasury yields keep rising across the curve this week, with the yield for the 30-year Treasury bond reaching its highest level since 2007, during the global financial crisis, at 5.33% so far on Monday. A mix of concerns about the ballooning US fiscal deficit and growing doubts about the Federal Reserve’s Independence are increasing pressure on US Government Bonds.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.