Forex Today: US Dollar rebounds after inflation data

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Here is what you need to know for Thursday, June 11:

The US Dollar Index (DXY) trades with a firmer tone above 100.00 after May inflation data highlighted persistent price pressure in the United States (US). The headline Consumer Price Index (CPI) rose 4.2% YoY, accelerating from 3.8% previously, while it increased 0.5% on a monthly basis. The data reinforced expectations that the Federal Reserve (Fed) may keep interest rates higher for longer despite softer core inflation readings.

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 Australian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.03%	0.09%	0.10%	-0.00%	0.45%	0.30%	0.23%
EUR	-0.03%		0.04%	0.06%	-0.09%	0.35%	0.27%	0.20%
GBP	-0.09%	-0.04%		0.02%	-0.10%	0.34%	0.24%	0.16%
JPY	-0.10%	-0.06%	-0.02%		-0.13%	0.31%	0.21%	0.10%
CAD	0.00%	0.09%	0.10%	0.13%		0.45%	0.34%	0.24%
AUD	-0.45%	-0.35%	-0.34%	-0.31%	-0.45%		-0.11%	-0.20%
NZD	-0.30%	-0.27%	-0.24%	-0.21%	-0.34%	0.11%		-0.08%
CHF	-0.23%	-0.20%	-0.16%	-0.10%	-0.24%	0.20%	0.08%

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 slips toward the 1.1540 area as the stronger Greenback pressures the shared currency. Traders are looking ahead to Thursday's European Central Bank (ECB) policy decision.

GBP/USD falls toward the 1.3370 region as broad US Dollar strength outweighs support from resilient UK economic data. Market participants remain focused on global interest rate expectations and risk sentiment.

USD/JPY climbs well into intervention territory above 160.50 as rising US Treasury yields widen the yield differential between the US and Japan.

AUD/USD weakens toward the 0.7000 area after the National Australia Bank (NAB) stated that the Reserve Bank of Australia's (RBA) next move is likely a rate cut, though the timing remains uncertain. Stronger US inflation data and renewed safe-haven demand for the USD add further pressure on the Aussie.

West Texas Intermediate (WTI) crude Oil rose 3% to $90.80 per barrel as reports indicating difficult negotiations between Washington and Tehran have kept supply risks in focus.

Gold trades near the $4,070 area, giving back part of its recent gains as higher Treasury yields and a firmer US Dollar reduce demand for the non-yielding metal.

What’s next in the docket:

Thursday, June 11:

Australia Inflation Expectations (Jun)
UK Monthly GDP (Apr)
UK Industrial Production (Apr)
UK Manufacturing Production (Apr)
UK Trade Balance (Apr)
Germany CPI (May)
ECB Interest Rate Decision
US PPI (May)
US Core PPI (May)
US Initial Jobless Claims

Friday, June 12:

Japan Industrial Production (Apr)
UK Inflation Expectations (Q2)
US Michigan Consumer Sentiment (Jun)
US Michigan Inflation Expectations (Jun)

WTI Oil FAQs

What is WTI Oil?

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.

What factors drive the price of WTI Oil?

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.

How does inventory data impact the price of WTI Oil

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.

How does OPEC influence the price of WTI Oil?

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.

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