The highlight of the Asian session will be the Bank of Japan meeting. Japan’s national CPI and New Zealand trade data will be released on Friday. The first look at economic activity in September will come from global PMIs, starting with preliminary figures from Australia and Japan. Later, the United Kingdom and Canada will report their retail sales.
Here’s what you need to know on Friday, September 22:
The Dollar Index finished slightly lower on Thursday after hitting 105.73, the highest level since March. The DXY retreated during the American session amid a Dollar correction and a pullback in US Treasury yields.
Mixed data was released in the United States, with initial jobless claims falling to 201,000, the lowest level since January. The Philadelphia Fed fell to -13.5 in September, and Existing Home Sales fell in August to an annual rate of 4.04 million. The dollar peaked following jobless claims data, which pointed to a still robust labor market, and then began to correct. The US S&P Global PMIs will be published on Friday.
Stocks on Wall Street fell for the second day in a row on Thursday, but this time the negative market sentiment did not help the dollar. The Dow Jones lost 1.08% and the Nasdaq fell 1.82%.
The EUR/USD pair marked new monthly lows at 1.0616 and then recovered to finish around 1.0660. Preliminary PMIs for September will be published on Friday.
USD/JPY hit multi-month highs near 148.50 before turning lower and falling more than a hundred points. The pair posted its worst daily result in weeks. On Friday, the Bank of Japan will announce its monetary policy decision. No changes are expected.
The Swiss franc fell on Thursday after the Swiss National Bank (SNB) surprised the market by holding interest rates at 1.75%, compared to expectations of a rise to 2%. USD/CHF finally broke above 0.9000, hitting three-month highs, while EUR/CHF rose from 0.9580 to 0.9680.
The British pound was one of the worst performing currencies after the Bank of England decided to keep its reference rate unchanged. It was a very close decision, with a vote of 5-4 in the Monetary Policy Committee. The GBP/USD pair It bottomed at 1.2234 and then bounced to the 1.2300 area, boosted by the decline in the US Dollar. UK retail sales will be reported on Friday.
AUD/USD lost ground again, but managed to rally above 0.6400, even amid deteriorating market sentiment. Australian PMI data will also be released on Friday.
USD/CAD rose for the second day in a row, but retreated below 1.3500 during the American session. Canada will report retail sales on Friday.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
