Forex Today: US Dollar pulls back as markets assess Iran; Fed, ECB ahead

Here is what you need to know for Tuesday, March 17:

The US Dollar (USD) reversed its four-day positive streak on Monday after markets assessed the United States (US) strike on Kharg Island, a strategic Iranian Oil outpost in the Persian Gulf, and warned that if Tehran continues to disrupt naval activity in the Strait of Hormuz, the US could target Oil infrastructure next. President Trump also urged allies to help secure that key shipping lane, but as of yet there are no takers.

The US Dollar Index (DXY) is trading near the 99.80 price region, coming down from the 100 mark it hit last week after escalations in the US and Israel's war on Iran.

EUR/USD is trading near the 1.1500 price region, breaking a four-day losing streak as the Euro (EUR) recovers some ground amid traders repositioning ahead of the separate European Central Bank (ECB) and the Federal Reserve (Fed) decisions. The monetary policy decisions are widely expected to keep interest rates unchanged this week.

GBP/USD is trading near the 1.3330 price zone, trimming almost all its losses from last week’s downward rally as investors prepare ahead of the Bank of England's (BoE) interest rate decision on Wednesday. The BoE is widely expected to hold interest rates steady.

USD/JPY is trading near the 159.00 level ahead of policy decisions from the Federal Reserve (Fed) and the Bank of Japan (BoJ) scheduled for Wednesday and Thursday, respectively.

West Texas Intermediate (WTI) Oil is trading for around $93.80 per barrel as traders ease after last week's spike.

Gold is trading at $5,011, little changed throughout the day but still losing ground after risk aversion dissipated.

What’s next in the docket:

Tuesday, March 10:

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

Wednesday, March 11:

• Germany, February, HICP.
• United Kingdom, BoE Monetary Policy Report Hearings.
• United Kingdom, 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.