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Dollar holds near 99.60 as Hormuz tensions and UK CPI loom

EUR/USD stayed near 1.1580, while USD/JPY pushed toward 159.60 ahead of UK CPI data and FOMC Minutes.

Reported · Written up by our desk · Major Pairs

FXStreet said the US Dollar Index, or DXY, held a firm tone near the 99.60s as worries tied to the Strait of Hormuz kept a mild safe-haven bid under the Greenback on Tuesday. The outlet reported that gold and oil prices slipped, while most major currencies drifted lower against the dollar.

The newsletter pointed to renewed attention on developments around the Strait, including remarks from Iran's top negotiator that the waterway would remain closed unless Washington meets conditions from an interim deal, and a US President Donald Trump claim that the strait is open and operating. FXStreet also noted a vessel was reportedly struck by an unknown projectile in the Strait earlier in the day, supporting the geopolitical premium under currencies.

FXStreet said attention then shifted to a busy Wednesday calendar, led by UK inflation data and a series of Eurozone releases, plus the Federal Open Market Committee Minutes. It cited EUR/USD holding in a narrow range around 1.1580 and GBP/USD hovering in the mid-1.3500s ahead of the UK Consumer Price Index print, where a hotter result could revive expectations for Bank of England rate hikes.

On the yen, FXStreet reported USD/JPY firmed as the dollar's safe-haven bid favored the Greenback, nudging the pair toward the 159.60 area. The outlet also flagged Japan's July trade figures later in the day and said AUD/USD was weaker, sliding toward 0.7080.

Latest closeGold $4,432.00 ▲1.6%|EUR/USD 1.157 ▲0.4%|USD/JPY 159.31 ▼0.1%

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