Forex Today: Oil collapses on Iran talks, Yen holds gains
Here is what you need to know for Tuesday, August 4:
Oil prices fell sharply on Monday amid growing expectations that talks between the US and Iran will resume soon. US President Donald Trump stated that conversations are underway after Tehran said it had no plans for direct negotiations.
The US Dollar Index (DXY) rises around 0.1% and trades near 99.90, holding just below the 100.00 threshold. The ISM Manufacturing Purchasing Managers Index climbed to 55.6 in July from 53.3, comfortably above the 54 forecast, while the New Orders Index improved to 56.7. The Prices Paid component eased to 71.1 from 73, remaining deep in expansion territory and suggesting cost pressures persist despite some moderation.
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 | 0.10% | 0.35% | -0.38% | 0.15% | 0.31% | 0.07% | 0.33% | |
| EUR | -0.10% | 0.24% | -0.51% | 0.06% | 0.19% | 0.02% | 0.17% | |
| GBP | -0.35% | -0.24% | -0.72% | -0.23% | -0.04% | -0.23% | -0.05% | |
| JPY | 0.38% | 0.51% | 0.72% | 0.46% | 0.61% | 0.45% | 0.58% | |
| CAD | -0.15% | -0.06% | 0.23% | -0.46% | 0.15% | -0.02% | 0.11% | |
| AUD | -0.31% | -0.19% | 0.04% | -0.61% | -0.15% | -0.19% | 0.00% | |
| NZD | -0.07% | -0.02% | 0.23% | -0.45% | 0.02% | 0.19% | 0.18% | |
| CHF | -0.33% | -0.17% | 0.05% | -0.58% | -0.11% | -0.00% | -0.18% |
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 declines around 0.2% and trades near 1.1510, giving back part of last week's advance as the firmer ISM print lifted US Treasury yields. The pair continues to hold above the 1.1500 handle, with the broader recovery structure intact.
GBP/USD falls around 0.4% and settles near 1.3430, the weakest performer among the European majors. Cable retreats from the multi-week highs reached after the Bank of England's hawkish hold, with no domestic catalysts to offset the Dollar's rebound.
USD/JPY drops around 0.4% and trades near 156.90, extending the decline that followed last week's intervention and the Bank of Japan's hawkish hold. The pair's inability to recover alongside the wider Greenback advance underlines how reluctant investors remain to rebuild Yen-short positions while Japanese authorities keep the threat of further operations alive.
AUD/USD slides around 0.5% to near 0.6990, slipping back below the 0.7000 psychological level. The Australian Dollar (AUD) leads losses among the majors, pressured by the softer commodity complex and the firmer Greenback.
West Texas Intermediate (WTI) Oil plunges around 7.4% and trades near $78 per barrel, one of the sharpest single-session declines this year. The prospect of negotiations between Washington and Tehran prompted traders to unwind supply-disruption hedges accumulated during the escalation of hostilities.
Gold (XAU/USD) edges around 0.2% higher and trades near $4,052 per troy ounce, holding above the $4,000 mark. The metal shrugs off the stronger Dollar as investors keep defensive exposure in place while the outcome of the Iran talks remains unresolved.
On Tuesday, the Asia-Pacific session carries the heaviest load. New Zealand publishes second-quarter labor market data, with the Unemployment Rate expected to rise to 5.4% from 5.3% and Employment Change seen slowing to 0.1% from 0.2%, while the Labor Cost Index is forecast to accelerate to 0.6% QoQ. Australia releases the final S&P Global Services and Composite PMIs, both expected to be confirmed at 53 and 52.6 respectively, alongside the AiG Industry Index.
Japan will publish Labor Cash Earnings, forecast to accelerate to 3.4% YoY in June from 3.2%, a reading that carries added weight given the Bank of Japan's emphasis on the wage-price cycle. The BoJ will also release the Minutes of its June policy meeting, which investors will scan for early evidence of the hawkish shift that surfaced in last week's vote split. China closes the session with the RatingDog Services PMI, seen easing to 53.7 from 54.1.
Earlier in the day, Canada releases the S&P Global Manufacturing PMI, expected at 50.2 after 53 in June. In the United States, Factory Orders are forecast to rebound 0.2% MoM in June from a 1.3% contraction, while JOLTS Job Openings are seen easing to 7.45 million from 7.594 million ahead of Wednesday's ADP report.
