Forex Today: Oil extends collapse on Hormuz reopening reports, Silver surges
Here is what you need to know for Wednesday, August 5:
Oil prices extended their slide on Tuesday after reports that an announcement on the reopening of the Strait of Hormuz could come within hours. Al Arabiya and Al Hadath, citing high-level sources, said communications are underway at full tilt, and that progress has been made, although no official confirmation has followed.
The US Dollar Index (DXY) eases around 0.10% and trades near 99.90 after softer-than-expected United States labor demand data. JOLTS Job Openings fell to 7.359 million in June from 7.537 million, missing the 7.4 million forecast and pointing to a further loosening in hiring appetite. Federal Reserve (Fed) Bank of Philadelphia President Anna Paulson said underlying inflation remains too high and that policy needs to stay mildly restrictive, adding that current settings likely meet that description.
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 Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.21% | -0.13% | 0.35% | 0.12% | -0.66% | -0.36% | -0.17% | |
| EUR | 0.21% | 0.06% | 0.58% | 0.33% | -0.46% | -0.15% | 0.06% | |
| GBP | 0.13% | -0.06% | 0.53% | 0.27% | -0.51% | -0.21% | -0.01% | |
| JPY | -0.35% | -0.58% | -0.53% | -0.24% | -1.02% | -0.74% | -0.41% | |
| CAD | -0.12% | -0.33% | -0.27% | 0.24% | -0.78% | -0.50% | -0.28% | |
| AUD | 0.66% | 0.46% | 0.51% | 1.02% | 0.78% | 0.28% | 0.50% | |
| NZD | 0.36% | 0.15% | 0.21% | 0.74% | 0.50% | -0.28% | 0.22% | |
| CHF | 0.17% | -0.06% | 0.00% | 0.41% | 0.28% | -0.50% | -0.22% |
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 advances around 0.20% and trades near 1.1530, recovering the ground lost on Monday as US Treasury yields retreat following the JOLTS miss. The pair holds comfortably above the 1.1500 threshold.
GBP/USD adds around 0.10% and trades near 1.3450, consolidating within its recent range. Cable lacks domestic catalysts, leaving price action dictated by the Greenback.
USD/JPY rises around 0.40% to trade near 157.80, with the Japanese Yen (JPY) the only major currency weakening against the US Dollar. The Japanese Yen surrenders part of last week's intervention-driven gains as the retreat in geopolitical risk erodes safe-haven demand and encourages a partial return to carry positioning.
AUD/USD climbs around 0.60% to near 0.7050, leading the majors and recovering the 0.7000 psychological level. The Australian Dollar benefits from the improved risk backdrop and the prospect of cheaper energy costs across the region.
West Texas Intermediate (WTI) Oil sinks around 5.3% and trades near $75.80 per barrel, a second consecutive session of heavy losses. The unwind of supply-disruption hedges accelerated as traders positioned for a formal announcement on the waterway.
Gold (XAU/USD) gains around 0.60% and trades near $4,080 per troy ounce, supported by the softer US Dollar and lower yields despite the calmer geopolitical tone. Silver outperforms sharply, surging around 2.5% toward $59.58 as the improved outlook for industrial demand compounds the boost from falling real rates.
The Asia-Pacific session will deliver New Zealand's second-quarter labor market report, Japan's Labor Cash Earnings and the Bank of Japan Minutes, followed by China's RatingDog Services PMI. Australia will publish on Thursday June trade figures, with the Trade Balance expected to narrow to a deficit of 1,100 million from 3,018 million.
Europe will open with the final HCOB Services and Composite PMIs. Spain's Services index is forecast at 55.3, up from 54.2, while Germany's Services reading is expected to be confirmed at 49.6, still in contraction territory, with the Composite gauge at 51.2. The Eurozone Composite PMI is seen unchanged at 51.9. The bloc will also release Producer Price Index data, with annual factory-gate inflation forecast to slow sharply to 4.6% from 5.9%.
In the United States, the ADP Employment Change is expected to show private hiring slowing to 70K in July from 98K, ahead of Friday's Nonfarm Payrolls. The ISM Services PMI is forecast to edge up to 54.5 from 54, with the Prices Paid component last at 67.7 and the Employment Index at 51.2. The S&P Global Composite PMI is seen confirmed at 53.6. Fed's Cook is also scheduled to speak.