Here’s what you need to know for Tuesday, March 17:
The US dollar (USD) reversed its four-day positive streak on Monday after markets assessed the United States (US) attack on Kharg Island, a strategic Iranian oil outpost in the Persian Gulf, and warned that if Tehran continues to disrupt maritime activities in the Strait of Hormuz, the US could attack oil infrastructure next. President Trump has also called on allies to support secure this key shipping lane, but so far there are no takers.
The US Dollar Index (DXY) is trading near the 99.80 price area, down from the 100 level it reached last week following the US-Israel escalation of the war with Iran.
Today’s US dollar price
The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the Canadian dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.90% | -0.83% | -0.46% | -0.35% | -1.32% | -1.62% | -0.55% | |
| EUR | 0.90% | 0.17% | 0.44% | 0.57% | -0.41% | -0.60% | 0.35% | |
| GBP | 0.83% | -0.17% | 0.36% | 0.41% | -0.57% | -0.80% | 0.21% | |
| JPY | 0.46% | -0.44% | -0.36% | 0.16% | -0.83% | -0.97% | -0.10% | |
| BOOR | 0.35% | -0.57% | -0.41% | -0.16% | -0.97% | -1.19% | -0.20% | |
| AUD | 1.32% | 0.41% | 0.57% | 0.83% | 0.97% | -0.22% | 0.83% | |
| NZD | 1.62% | 0.60% | 0.80% | 0.97% | 1.19% | 0.22% | 1.01% | |
| CHF | 0.55% | -0.35% | -0.21% | 0.10% | 0.20% | -0.83% | -1.01% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select 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 1.1500 price area, snapping a four-day losing streak, while the euro (EUR) is paring losses as investors move ahead of separate decisions by the European Central Bank (ECB) and the Federal Reserve (Fed). Monetary policy decisions are widely expected to leave interest rates unchanged this week.
GBP/USD is trading near the price zone at 1.3330, recovering almost all of its losses from last week’s rally as investors prepare for Wednesday’s Bank of England (BoE) interest rate decision. The BoE is widely expected to keep interest rates steady.
USD/JPY is trading near the 159.00 level ahead of the Federal Reserve (Fed) and Bank of Japan (BoJ) policy decisions scheduled for Wednesday and Thursday, respectively.
West Texas Intermediate (WTI) crude oil is trading around $93.80 a barrel as prices fall after last week’s surge.
Gold is trading at $5,011, little changed on the day, but still depreciating as risk aversion subsides.
What’s next on the docket:
Tuesday, March 10:
- UK, February, BRC like-for-like retail.
- China, February, Export.
- China, February, trade balance.
- Germany, January, trade balance.
- Eurozone, EcoFin meeting.
- United States, ADP employment change.
- United States, February, change in existing home sales.
Wednesday, March 11:
- Germany, February, HICP.
- UK, BoE Monetary Policy Report Hearings.
- Great Britain, Consumers’ 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, start of house construction.
- United States, Initial Unemployment Claims.
- United States, February, Monthly Budget Statement.
- New Zealand, February, NZ business PMI.
Friday, March 13:
- Great Britain, January, GDP.
- UK, January, Manufacturing.
- Spain, February, HICP.
- Eurozone, January, Industrial Production sa
- Canada, February, average hourly wage.
- Canada, February, net change in employment.
- Canada, February, unemployment rate.
- United States, January, basic personal consumption expenditures – price index.
- United States, Flash (Q4), core personal consumption spending.
- United States, January, tough goods orders.
- United States, Flash (Q4), annual gross domestic product.
- United States, Flash (Q4), Gross Domestic Product Price Index.
- United States, January, ex-aircraft non-defense capital goods orders.
- United States, January, Personal Consumption Expenditures – Price Index.
- United States, Flash (Q4), Personal Consumer Spending Prices.
- United States, January, personal income.
- United States, January, personal expenses.
- United States, March Flash, Michigan Consumer Expectations Index.
- United States, March Flash, Michigan Consumer Sentiment Index.
- United States, March Preliminary, One-Year Consumer Inflation Expectations.
- United States, January, JOLTS Job Offers.
- United States, March Preliminary, 5-Year Individual Expected Consumer Inflation.
Frequently asked questions about WTI crude oil
WTI Oil is a type of crude oil sold on international markets. WTI stands for West Texas Intermediate, one of three main types, including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” due to its relatively low weight and low sulfur content. It is considered a high-quality oil that can be easily refined. It originates in the United States and is distributed through the Cushing Junction, considered the “Crossroads of the World.” It is a reference point for the crude oil market, and the WTI price is often quoted in the media.
Like all assets, supply and demand are key factors influencing the price of WTI crude oil. Therefore, global growth may drive increased demand and, conversely, feeble global growth. Political instability, wars and sanctions can disrupt supply and affect prices. Another key factor shaping prices are the decisions of OPEC, the group of major oil-producing countries. The value of the US dollar affects the price of WTI crude oil because oil is mainly sold in US dollars, so a weaker US dollar can make oil more affordable and vice versa.
Weekly crude oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Administration (EIA) influence the price of WTI crude oil. Inventory changes reflect fluctuations in supply and demand. If the data shows a decline in inventories, it may indicate increased demand, which will result in an enhance in the price of oil. Higher inventories may reflect increased supply, which causes prices to fall. The API report is published every Tuesday and the EIA report the following day. Their results are usually similar and are within 1% of each other 75% of the time. EIA data is considered more reliable because it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 oil-producing countries that jointly decide on production quotas for member countries at meetings held twice a year. Their decisions often influence the prices of WTI crude oil. When OPEC decides to cut quotas, it can tighten supply, which will push up oil prices. OPEC increasing production has the opposite effect. OPEC+ refers to an expanded group that includes ten additional non-OPEC members, the most notable of which is Russia.
