|

Forex Today: US data takes centre stage pre-FOMC gathering

There was no respite for the selling mood hurting the Greenback on Monday, as market participants gave further credit to the likelihood that the Fed might surprise everybody and reduce its rates by a half percentage point on Wednesday.

Here is what you need to know on Tuesday, September 17:

The US Dollar Index (DXY) dropped for the third consecutive session, trading well south of the 101.00 support in combination with lower yields across the board. Retail Sales, Industrial and Manufacturing Production, Business Inventories, the NAHB Housing Market Index and the API’s report on US crude oil inventories are all due on September 17.

Further weakness in the US Dollar propelled EUR/USD well past the 1.1100 barrier to clock new multi-day highs. On September 17 comes the Economic Sentiment gauged by the ZEW institute in Germany and the broader Euroland.

GBP/USD resumed its uptrend and managed to surpass the 1.3200 hurdle, or two-week peaks. The next risk event on the UK docket will be the release of the Inflation Rate on September 18.

USD/JPY dropped and bounced off new lows near 139.60 following the sell-off in the Greenback and declining US yields. The Tertiary Industry Index is expected on September 17.

AUD/USD climbed further north of the 0.6700 yardstick and hit fresh two-week highs. Next on tap Down Under will be the release of the Westpac Leading Index on September 18.

WRTI prices maintained their bullish stance and trespassed the key $70.00 mark per barrel, up for the fourth day in a row.

Prices of Gold hit a record high and gradually approached the key $2,600 mark per barrel amidst the weaker Dollar and speculation of a larger rate cut by the Fed. Silver prices navigated an inconclusive session, hovering just below the $31.00 mark per ounce.

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Editor's Picks

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s  irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest 

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.