Forex Today: US Dollar touches one-year high, Pound slips on BoE hold

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 British Pound.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.34%	0.65%	0.42%	0.22%	-0.07%	0.20%	0.56%
EUR	-0.34%		0.32%	0.09%	-0.13%	-0.42%	-0.19%	0.22%
GBP	-0.65%	-0.32%		-0.23%	-0.44%	-0.72%	-0.48%	-0.11%
JPY	-0.42%	-0.09%	0.23%		-0.19%	-0.51%	-0.27%	0.11%
CAD	-0.22%	0.13%	0.44%	0.19%		-0.31%	-0.07%	0.32%
AUD	0.07%	0.42%	0.72%	0.51%	0.31%		0.24%	0.63%
NZD	-0.20%	0.19%	0.48%	0.27%	0.07%	-0.24%		0.40%
CHF	-0.56%	-0.22%	0.11%	-0.11%	-0.32%	-0.63%	-0.40%

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 remained under pressure near 1.1460 amid broad US Dollar (USD) strength. The Euro also remained cautious after European Central Bank (ECB) officials continued to warn about uncertainty surrounding energy prices, inflation transmission, and potential second-round effects on wages.

GBP/USD traded near a two-month low close to the 1.3210 level after the Bank of England (BoE) left interest rates unchanged at 3.75%. The BoE voted 7-2 to keep the Bank Rate steady, with most policymakers favoring patience amid uncertainty over the inflation outlook and recent volatility in energy prices. However, two members backed raising the rate to 4.00%, showing that inflation concerns remain.

USD/JPY traded with a firmer tone in intervention territory of 161.40, a level it hasn’t been at since July 2024. The pair benefited from renewed demand for the Greenback as Warsh signaled that policymakers still need greater confidence that inflation is moving sustainably toward the 2% target.

AUD/USD trades muted near 0.7020 as the Australian Dollar (AUD) struggles to extend gains, while the US Dollar remains supported by US labor market data.

West Texas Intermediate (WTI) Oil remained little changed near $75.70 per barrel following the US-Iran agreement to reopen the Strait of Hormuz.

Gold struggled to gain traction near $4,220 as the Greenback remained supported by the Fed’s cautious policy message. Lower Oil prices and improved risk sentiment limited safe-haven demand, while firm US yields also weighed on the non-yielding metal.

What’s next in the docket:

Friday, June 19:

Germany PPI (May)
UK Retail Sales (May)
Canada Retail Sales (Apr)

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.