EUR/USD slides below 1.1600 amid risk-off mood due to escalating US-Iran war.
Receding dovish Fed bets have also strengthened the US Dollar.
Both the Eurozone headline and the core HICP rose at a faster-than-expected pace in February.
The EUR/USD pair plummets 0.85% to near 1.1585 during the European session on Tuesday, and seems on track to test its three-month low of 1.1575. The major currency pair faces severe selling pressure as the US Dollar (USD) extends its advance amid risk-off market sentiment due to the escalated war between the United States (US), Iran, and Israel.
The war situation in the Middle East has increased the safe-haven demand for the US Dollar.
At the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.8% higher to near 99.40, the highest level seen in over a month. S&P 500 futures trade almost 1.5% lower, indicating weak appetite for riskier assets.
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 New Zealand Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
USD | 0.81% | 0.86% | 0.36% | 0.27% | 0.97% | 1.03% | 0.91% | |
EUR | -0.81% | 0.05% | -0.44% | -0.53% | 0.17% | 0.23% | 0.10% | |
GBP | -0.86% | -0.05% | -0.52% | -0.58% | 0.09% | 0.17% | 0.05% | |
JPY | -0.36% | 0.44% | 0.52% | -0.08% | 0.61% | 0.66% | 0.55% | |
CAD | -0.27% | 0.53% | 0.58% | 0.08% | 0.69% | 0.75% | 0.63% | |
AUD | -0.97% | -0.17% | -0.09% | -0.61% | -0.69% | 0.06% | -0.07% | |
NZD | -1.03% | -0.23% | -0.17% | -0.66% | -0.75% | -0.06% | -0.11% | |
CHF | -0.91% | -0.10% | -0.05% | -0.55% | -0.63% | 0.07% | 0.11% |
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).
Earlier in the day, Tehran launched a series of drone attacks on the US Embassy in Riyadh, as part of their retaliation for Washington and Israel, in a joint operation, killing Iran’s several top leaders, including Supreme leader Ayatollah Ali Khamenei.
In addition to the risk-off impulse, receding dovish Federal Reserve (Fed) expectations for the June policy meeting have also strengthened the US Dollar. The CME FedWatch tool shows that the probability of the Fed holding interest rates steady in the June policy meeting has increased to 53.5% from 42.7% seen on Friday.
Traders have pared dovish Fed bets after the release of the US ISM Manufacturing PMI report for February on Monday, which showed signs of accelerating factory-level inflation. The report showed that Manufacturing Prices Paid – which tracks changes in prices paid for inputs such as labor and raw materials – soared to 70.5 against estimates of 59.5 and the previous reading of 59.0.
In the Eurozone, preliminary Harmonized Index of Consumer Prices (HICP) data for February have come in stronger-than-expected.
During European trading hours, the Eurostat reported that the headline HICP arrived at 1.9% Year-on-Year (YoY), higher than estimates and the February reading of 1.7%. Also, the core inflation – which excludes volatile components like food, energy, alcohol, and tobacco – rose at a faster pace of 2.4% vs. estimates and the prior release of 2.2%.
Comments
Log in or sign up to join the conversation.