Forex Today: Investors now look at US PCE amidst Fed rate cut bets


The Greenback navigated quite a bearish session on Thursday, giving away a big chunk of Wednesday’s gains despite higher yields and amidst a persistently firm sentiment in the risk-associated universe.

Here is what you need to know on Friday, September 27:

The US Dollar Index (DXY) dropped markedly and revisited the a100.50 region in a context favourable to the risk-related galaxy. The PCE data will gather all the attention seconded by the final print of the Michigan Consumer Sentiment, Personal Income and Personal Spending.

EUR/USD managed to regain some composure and faded most of Wednesday’s steep retracement, revisiting the 1.1190 zone. The German labour market report takes centre stage, along with the final Consumer Confidence, Consumer Inflation Expectation and Economic Sentiment. In addition, the ECB’s Cipollone and Lane are due to speak.

GBP/USD reclaimed the 1.3400 barrier and above and clinched fresh yearly peaks on the back of the better tone in the risk-associated space. The next important data release across the Channel will be the GDP figures on September 30 along with Mortgage Approvals.

USD/JPY rose to three-week highs north of the 145.00 mark before giving away most of those gains towards the end of the day. Inflation figures in Tokyo are due along with weekly Foreign Bond Investment figures and the final Coincident Index and Leading Economic Index.

AUD/USD rose markedly and flirted once again with the key 0.6900 barrier on the back of news of fresh stimulus in China and the vacillating tone in the greenback. Next on tap in Oz will be the Housing Credit figures, and Private Sector Credit.

Another negative day saw prices of WTI tumble below the $67.00 mark per barrel to clinch new two-week lows on the back of OPEC+ plans to hike oil output.

Gold prices maintained their uptrend well in place and clocked an all-time high near the $2,690 mark per ounce troy despite higher US yields. Silver followed suit and climbed to the $32.70 zone per ounce for the first time since December 2012.

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