Forex Today: US Dollar slips as Oil stabilizes after Trump comment
Here is what you need to know for Wednesday, March 11:
Better market sentiment is taking its toll on the Greenback as stabilizing Oil prices give riskier positions more appeal to investors. According to the EIA Short-Term Energy Outlook, "Once the oil trade through the Strait of Hormuz is reestablished, global oil production will continue to outpace consumption, removing the stagnation fears." The statement maintained markets' optimism late in the American session. Meanwhile, G7 members stand ready to release reserves to keep oil prices under control though they have decided against any release thus far.
President Donald Trump's comment on Monday afternoon that the war he launched alongside Israel against Iran was "largely complete" has left the market rather optimistic that a ceasefire and an opening of the Strait of Hormuz could happen as soon as this week. However, German Chancellor Friedrich Merz told reporters that, "We're concerned at the apparent lack of a joint plan on how this war can quickly be brought to a convincing conclusion."
The US Dollar Index (DXY) is trading near 98.70, in a tightly bound range, slipping after market sentiment improved amid easing concerns about oil flows.
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 | -0.09% | -0.18% | -0.03% | -0.11% | -1.06% | -0.32% | -0.07% | |
| EUR | 0.09% | -0.08% | 0.07% | -0.01% | -0.98% | -0.23% | 0.03% | |
| GBP | 0.18% | 0.08% | 0.13% | 0.06% | -0.90% | -0.15% | 0.12% | |
| JPY | 0.03% | -0.07% | -0.13% | -0.08% | -1.04% | -0.30% | -0.03% | |
| CAD | 0.11% | 0.01% | -0.06% | 0.08% | -0.95% | -0.22% | 0.06% | |
| AUD | 1.06% | 0.98% | 0.90% | 1.04% | 0.95% | 0.74% | 1.01% | |
| NZD | 0.32% | 0.23% | 0.15% | 0.30% | 0.22% | -0.74% | 0.27% | |
| CHF | 0.07% | -0.03% | -0.12% | 0.03% | -0.06% | -1.01% | -0.27% |
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 1.1640 price zone, reaching a one-week high after three consecutive days of gains following United States (US) President Donald Trump's comments that the end of the war could be at hand.
GBP/USD is trading near the 1.3455 level, rising to a two-week high after the Middle East conflict sparked inflation fears worldwide, prompting market participants to price out a rate cut by the Bank of England (BoE) at the March 19 meeting.
USD/JPY is trading near the 157.70 price zone, steadying after the US Dollar (USD) lost investors' interest over a brief expectation of “resolution” in the Oil flows. The Japanese Yen (JPY) fails to gain more traction amid a weakened USD, as Oil supply disruptions linked to the escalating US-Iran war weigh on the market, given the country’s reliance on imported energy.
West Texas Intermediate (WTI) Oil is trading below $80 per barrel after the United States (US) War Secretary Pete Hegseth said, “If Iran does anything to stop the flow of Oil within the Strait of Hormuz, they will be hit harder than ever.”
Gold is trading at $5,230 as the bright metal draws support from a recently weakened USD, surging above a one-week high and now expected to extend its gains over the week.
What’s next in the docket:
Wednesday, March 11:
- Germany, February, HICP.
- United Kingdom, BoE Monetary Policy Report Hearings.
- United Kingdom, Consumer Inflation Expectations.
- United States, February, CPI.
Thursday, March 12:
- Australia, March, Consumer Inflation Expectations
- UK, January, Industrial Production.
- United States, January, Building Permits.
- United States, January, Housing Starts.
- United States, Initial Jobless Claims.
- United States, February, Monthly Budget Statement.
- New Zealand, February, Business NZ PMI.
Friday, March 13:
- UK, January, GDP.
- UK, January, Manufacturing Production.
- Spain, February, HICP.
- Eurozone, January, Industrial Production s.a.
- Canada, February, Average Hourly Wages.
- Canada, February, Net Change in Employment.
- Canada, February, Unemployment Rate.
- United States, January, Core Personal Consumption Expenditures - Price Index.
- United States, Flash (Q4), Core Personal Consumption Expenditures.
- United States, January, Durable Goods Orders.
- United States, Flash (Q4), Gross Domestic Product Annualized.
- United States, Flash (Q4), Gross Domestic Product Price Index.
- United States, January, Nondefense Capital Goods Orders ex Aircraft.
- United States, January, Personal Consumption Expenditures - Price Index.
- United States, Flash (Q4), Personal Consumption Expenditures Prices.
- United States, January, Personal Income.
- United States, January, Personal Spending.
- United States, Flash March, Michigan Consumer Expectations Index.
- United States, Flash March, Michigan Consumer Sentiment Index.
- United States, Flash March, UoM 1-year Consumer Inflation Expectations.
- United States, January, JOLTS Job Openings.
- United States, Flash March, UoM 5-year Consumer Inflation Expectation.
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.
