Here’s what you need to know on Tuesday, May 5th.
The dollar index (DXY) is holding steady around 98.40. This strength seems to stem from safe-haven demand, particularly as tensions escalate in the Middle East. There are reports claiming Iran attacked a US warship, even though the US has denied these accusations. Such events are contributing to market unease, which, in turn, is bolstering the dollar.
USD price today
Below is a snapshot of how the US dollar (USD) is performing against other major currencies today, with the USD leading against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.19% | 0.30% | 0.02% | 0.16% | 0.42% | 0.41% | 0.22% | |
| EUR | -0.19% | 0.06% | -0.17% | -0.03% | 0.23% | 0.21% | 0.01% | |
| GBP | -0.30% | -0.06% | -0.26% | -0.10% | 0.16% | 0.12% | -0.04% | |
| JPY | -0.02% | 0.17% | 0.26% | 0.11% | 0.34% | 0.34% | 0.14% | |
| CAD | -0.16% | 0.03% | 0.10% | -0.11% | 0.24% | 0.22% | 0.05% | |
| AUD | -0.42% | -0.23% | -0.16% | -0.34% | -0.24% | -0.04% | -0.20% | |
| NZD | -0.41% | -0.21% | -0.12% | -0.34% | -0.22% | 0.04% | -0.18% | |
| CHF | -0.22% | -0.01% | 0.04% | -0.14% | -0.05% | 0.20% | 0.18% |
The heat map illustrates percentage shifts among major currencies. Selecting USD from the left column and moving to JPY horizontally, for example, reveals the USD/JPY percentage change.
Currently, EUR/USD is struggling at the 1.700 mark, finding it tough to pick up pace amidst a strengthening dollar in a cautious market climate.
GBP/USD is facing downward pressure at around 1.3540, as traders remain wary and reluctant to make bold moves before important global events.
USD/JPY has nudged up slightly to about 157.10, bolstered by the safe-haven flows into the dollar, while the Japanese Yen retains some resilience due to its own safe-haven status.
With the Reserve Bank of Australia (RBA) set to announce its monetary policy, AUD/USD has dipped to approximately 0.7170. There’s a general expectation of a 25 basis point rate hike, bringing the Official Cash Rate (OCR) to 4.35%. While expectations of tightening support the Australian dollar, the geopolitical tension and a strong US dollar are keeping any gains in check.
WTI crude oil prices are trending upward, hovering close to $105.00 per barrel. This increase can be attributed to ongoing concerns about supply disruptions in the Middle East and heightened inflation worries, both of which are leaning into a commodity-driven narrative.
As for gold, prices have dipped towards $4,524, as shifts in safe-haven demand rise amid geopolitical tensions, prompting investors to seek shelter from increasing risks in the global landscape.
Here’s what’s next on the docket:
Tuesday, May 5th:
- Reserve Bank of Australia interest rate decisions
- Australian RBA Monetary Policy Statement
- Australian RBA Interest Rate Statement
- China Consumer Price Index April month-on-month change
- US S&P PMIS April
- US ISM Service PMIS
- US JOLTS Jobs March
- U.S. new home sales February and March month-over-month
- New Zealand employment data
Wednesday, May 6th:
- China Caixin Services PMI April
- Germany, France, Italy, Eurozone HCOB Services PMI April
- Eurozone Producer Price Index March month-on-year change
- US ADP Employment Changes April
- Canadian Ivy PMI April
- Japanese worker cash income March year-on-year change
- Minutes of the Bank of Japan Monetary Policy Meeting
Thursday, May 7th:
- Australian trade balance
- German factory orders March month-on-year change
- Eurozone retail sales March month-on-year change
- U.S. Challenger headcount reductions
- Number of new unemployment insurance claims in the US
- US non-agricultural productivity Q1 pre-rel
- US unit labor costs Q1 ago
Friday, May 8th:
- German industrial production March month-on-year change
- Eurozone trade balance March
- Canadian employment data
- US NFP Report
