Forex Today: US inflation and the size of the Fed’s rate cut


The Greenback added to the ongoing uptrend, although it seems to have run out of some upside impetus on Tuesday amidst the broad-based cautious stance ahead of the release of key US CPI readings on Wednesday.

Here is what you need to know on Wednesday, September 11:

The US Dollar Index (DXY) managed well to maintain business in the upper end of the range near 101.70 prior to key data releases on Wednesday. The release of the Inflation Rate tracked by the CPI will be the salient event on September 11, seconded by the weekly MBA Mortgage Applications, and the EIA’s weekly report on crude oil inventories.

EUR/USD could not help retreating for the third consecutive day, approaching the key support area near 1.1000. The next risk event in the euro area will be the ECB’s interest rate decision on September 12.

GBP/USD alternated gains with losses within a tight range against the backdrop of the generalized prudent tone in the FX universe. On September 11, the UK docket will feature GDP figures, Balance of Trade results, Construction Output, Industrial and Manufacturing Production, and the NIESR Monthly GDP Tracker.

USD/JPY resumed its downtrend and broke below the 143.00 support, shifting its attention to recent lows in the sub-142.00 region. The BoJ’s Nakagawa is due to speak on September 11.

AUD/USD retreated for the third consecutive day, although it seems to have met some decent contention in the 0.6650-0.6640 band for the time being. Consumer Inflation Expectations and the speech by the RBA’s Hunter are expected on September 11.

Persistent demand concerns and a disheartening OPEC report sent WTI prices to the vicinity of the $65.00 mark per barrel for the first time since early May 2023.

Prices of Gold added to Monday’s uptick amidst marginal gains in the greenback and declining US yields prior to the release of the US CPI on Wednesday. Silver prices posted humble losses around the $28.30 zone following an earlier uptick to two-day highs.

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