US dollar holds firm

David Morrison

SENIOR MARKET ANALYST

12 Mar 2026

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FX was relatively subdued this morning as traders took a breather following yesterday’s sharp moves. On Wednesday, the US dollar jumped in response to news of Iranian attacks on shipping in the Persian Gulf, while the Strait of Hormuz remains closed. Oil prices rallied, despite announcements by both the International Energy Agency and the US Energy Department of significant releases from strategic reserves.

Overall, the major takeaway is that there’s no sign that the war between the US/Israel and Iran will reach a conclusion anytime soon. This could be the darkness before the dawn, but for now, there’s a general move to derisk and ask questions later.

The Dollar Index was a touch weaker in early trade on Thursday. But it was still hovering above 99.00. The dollar is acting as the big ‘flight to safety’ trade. But it would take a significant break above 100.00 on cash to suggest that a significant long-term bottom is in for the greenback.

Source: TN Trader 


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