Forex Today: US Dollar rises as Middle East tensions lift Oil

Agustin Wazne FXStreet

Here is what you need to know for Wednesday, July 22:

The US Dollar (USD) advances on Tuesday as escalating tensions between the United States (US) and Iran push energy prices higher and revive concerns that inflation could remain elevated. The Greenback also benefits from safe-haven demand despite softer US inflation and employment indicators.

The US Dollar Index (DXY) rises toward 101.20, extending its recovery for a fourth consecutive session. The ADP Employment Change four-week average declined to 16.5K from 19.25K, pointing to weaker hiring momentum, although geopolitical uncertainty and higher Oil prices remain the dominant market drivers.

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		0.12%	0.39%	0.46%	0.25%	-0.03%	0.19%	0.31%
EUR	-0.12%		0.27%	0.34%	0.16%	-0.13%	0.07%	0.20%
GBP	-0.39%	-0.27%		0.07%	-0.13%	-0.40%	-0.20%	-0.07%
JPY	-0.46%	-0.34%	-0.07%		-0.20%	-0.46%	-0.27%	-0.13%
CAD	-0.25%	-0.16%	0.13%	0.20%		-0.27%	-0.06%	0.06%
AUD	0.03%	0.13%	0.40%	0.46%	0.27%		0.20%	0.32%
NZD	-0.19%	-0.07%	0.20%	0.27%	0.06%	-0.20%		0.12%
CHF	-0.31%	-0.20%	0.07%	0.13%	-0.06%	-0.32%	-0.12%

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 slightly lower near 1.1400 as broad US Dollar strength outweighs the impact of softer US economic data. With no major Eurozone releases scheduled, the pair remains mainly driven by geopolitical developments and expectations surrounding the Federal Reserve’s (Fed) policy outlook.

GBP/USD falls toward 1.3380, losing around 0.4% as the Pound Sterling (GBP) underperforms amid concerns over the UK fiscal outlook and the leadership transition in the Labour Party. Investors are also cautious ahead of Wednesday’s UK inflation report, which could provide fresh signals about the Bank of England’s next policy steps.

USD/JPY climbs above 163.20 after breaking the 163.00 level for the first time since December 1986. The combination of rising US yields, higher Oil prices and persistent Japanese Yen weakness increases speculation that Japanese authorities could intervene to slow the currency’s decline.

AUD/USD remains nearly unchanged near 0.7000. The Australian Dollar (AUD) receives some support from softer US inflation and labor market data, but its upside remains limited by broad Greenback demand and caution surrounding the Middle East conflict.

West Texas Intermediate (WTI) Oil advances more than 2% to $84.50 per barrel as continued US-Iran strikes and threats to shipping routes raise concerns about global energy supplies. Two tankers carrying Saudi crude reportedly reversed course following threats from the Iran-aligned Ansar Allah in Yemen.

Gold rises nearly 2% toward $4,085 per troy ounce, supported by safe-haven flows and softer US inflation data. The precious metal gains despite a stronger US Dollar as investors assess the possibility of further escalation after US President Donald Trump threatened additional strikes against Iranian nuclear-linked facilities.

The United Kingdom (UK) Consumer Price Index (CPI) is expected to increase 0.1% MoM in June, slowing from 0.2%, while annual inflation is forecast to ease to 2.7% from 2.8%. Core CPI is expected to decline to 2.5% from 2.6%.

Australia will publish the Westpac Leading Index, while New Zealand will release Credit Card Spending data. China’s Foreign Direct Investment figures will also be monitored.

In the United States, attention will turn to MBA Mortgage Applications.

Author

Agustin Wazne

FXStreet

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

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