Forex Today: US Dollar loses momentum as Oil volatility shakes global markets

Here is what you need to know on Tuesday, March 10:

News that several countries have cut Oil output hit the financial markets on Monday as Oil producers claimed they are unable to export through the Strait of Hormuz amid threats from Iran. West Texas Intermediate (WTI) hit a three-year high near $113 during the Asian session but corrected lower after reports that the G7 was planning to release emergency crude reserves to stabilize markets, extending losses after the Wall Street open as US stocks shrugged off concerns and turned positive.

The US Dollar Index (DXY) is trading near the 98.90 price zone, retreating from its intraday gains at the start of the week as riskier assets attract more attention.

EUR/USD is trading near the 1.1580 price region, trimming its intraday losses and rising by over 0.15%, as low demand for riskier assets amid the intensified war in the Middle East has faded during the American session.

GBP/USD is trading near the 1.3390 price zone, trading in a tight bound range, still in the green as the US Dollar (USD) loses traction against all major currencies.

USD/JPY is trading near 158.30, with limited losses as the Greenback recedes some of its ground on a firmer Japanese Yen (JPY). Japan’s Prime Minister Sanae Takaichi said on Monday that households are concerned about rising gasoline prices and that the government is exploring measures to mitigate the impact.

AUD/USD is surging near the 0.7050 level, as stronger-than-expected economic data from China provides support to the Chinese-linked Australian Dollar (AUD).

West Texas Intermediate (WTI) Oil is trading near $94.90 per barrel, after the black gold hit a three-year high above $113 in the Asian session. The G7 members and the International Energy Agency (IEA) are working to release emergency oil reserves to ease concerns about supply disruptions. Oil prices could push global inflation higher, raising stagflation risks.

Gold is trading at $5,120, posting a slight decline after trimming back almost all its Asian-session losses, but still failing to regain traction.

What’s next in the docket:

Tuesday, March 10:

• UK February BRC Like-For-Like Retail Sales.
• China February Exports.
• China February Trade Balance.
• Germany January Trade Balance.
• Eurozone, EcoFin Meeting.
• United States ADP Employment Change 4-week average.
• United States February Existing Home Sales Change.

Wednesday, March 11:

• Germany February HICP.
• UK BoE Monetary Policy Report Hearings.
• UK Consumer Inflation Expectations.
• United States February CPI.

Thursday, March 12:

• Australia March Consumer Inflation Expectations
• UK January Industrial Production.
• United States January Building Permits.
• United States January Housing Starts.
• United States Initial Jobless Claims.
• United States February Monthly Budget Statement.
• New Zealand February Business NZ PMI.

Friday, March 13:

• UK January GDP.
• UK January Manufacturing Production.
• Spain February HICP.
• Eurozone January Industrial Production s.a.
• Canada February Average Hourly Wages.
• Canada February Net Change in Employment.
• Canada, February, Unemployment Rate.
• United States January Core Personal Consumption Expenditures - Price Index.
• United States Flash (Q4) Core Personal Consumption Expenditures.
• United States January Durable Goods Orders.
• United States Flash (Q4),Gross Domestic Product Annualized.
• United States Flash (Q4) Gross Domestic Product Price Index.
• United States January Nondefense Capital Goods Orders ex Aircraft.
• United States January Personal Consumption Expenditures - Price Index.
• United States Flash (Q4) Personal Consumption Expenditures Prices.
• United States January Personal Income.
• United States January Personal Spending.
• United States Flash March Michigan Consumer Expectations Index.
• United States Flash March Michigan Consumer Sentiment Index.
• United States Flash March UoM 1-year Consumer Inflation Expectations.
• United States January JOLTS Job Openings.
• United States Flash March UoM 5-year Consumer Inflation Expectation.