Forex Today: US Dollar surges above 98.50 as US-Israel strikes on Iran spark geopolitical crisis

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 Swiss Franc.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.89%	0.39%	0.66%	0.21%	0.17%	0.71%	1.22%
EUR	-0.89%		-0.50%	-0.24%	-0.67%	-0.72%	-0.18%	0.34%
GBP	-0.39%	0.50%		0.25%	-0.17%	-0.22%	0.32%	0.83%
JPY	-0.66%	0.24%	-0.25%		-0.42%	-0.47%	0.08%	0.58%
CAD	-0.21%	0.67%	0.17%	0.42%		-0.04%	0.48%	1.01%
AUD	-0.17%	0.72%	0.22%	0.47%	0.04%		0.55%	1.05%
NZD	-0.71%	0.18%	-0.32%	-0.08%	-0.48%	-0.55%		0.50%
CHF	-1.22%	-0.34%	-0.83%	-0.58%	-1.01%	-1.05%	-0.50%

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 1.1700 level, starting the week lower as investors went risk-off throughout the day. Austria’s central bank governor and European Central Bank (ECB) member Martin Kocher said that the ECB should be ready to move interest rates “in either direction” if uncertainty intensifies.

GBP/USD is trading near 1.3420, with the US Dollar gaining ground after falling to 1.3314 earlier in the day, its lowest level since December 17 Local elections in northern England weakened Prime Minister Keir Starmer's position within his Labour Party, raising speculation that he could be replaced.

USD/JPY is trading near the 157.30 price region, as the US Dollar wins the safe-haven buyoff.

AUD/USD is trading near the 0.7100 price zone, as the Australian dollar (AUD) opened with a gap at the beginning of the session, trimming most of its intraday losses amid a spike in commodity prices.

Gold is trading at $5,330, trimming half its intraday gains during the American session as the USD draws investors' attraction from its bright competitor.

What’s next in the docket:

Tuesday, March 3:

Australian January Building Permits.
Eurozone HICP.
Italian February flash CPI.
Australian AiG Industry Index.
Australian February S&P Global Composite PMI.
Australian February Global Services PMI.

Wednesday, March 4:

Australian Q4 GDP.
Chinese February NBS Manufacturing PMIs.
Chinese February RatingDog Services PMI.
Swiss February CPI.
Spain Feb HCOB PMI.
Germany Feb HCOB PMI.
Eurozone Feb HCOB PMIs.
Eurozone Jan PPIs.
Italian Q4 GDP.
US ADP Employment Change.
US S&P Feb Global Composite PMI
US Feb ISM Services Employment Index.
US Feb ISM Services New Orders Index.
US Feb ISM Services PMI.
US Feb ISM Services Prices Paid.
US Fed's Beige Book.

Thursday, March 5:

Australian January Trade Balance.
Eurozone January Retail Sales
US February Challenger Job Cuts
US Initial Jobless Claims
US flash Nonfarm Productivity
US flash Unit Labor Costs (Q4).

Friday, March 6:

Germany January Factory Orders n.s.a.
Eurozone Employment Change (Q4).
Eurozone GDP (QoQ) (Q4).
US February Average Hourly Earnings.
US February Labor Force Participation Rate.
US February Nonfarm Payrolls.
US January Retail Sales.
US February U6 Underemployment Rate.
US February Unemployment Rate
Canadian February Ivey PMIs.

Gold FAQs

Why do people invest in Gold?

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Who buys the most Gold?

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

How is Gold correlated with other assets?

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

What does the price of Gold depend on?

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.