Forex Today – Asian Session: Dollar strengthens but remains range bound

What to watch for on Wednesday, September 21:

The US dollar advanced on Tuesday as the market mood soured. The rise in treasury bond yields supported the dollar throughout the day as the 2-year Treasury yield soared to its 15-year high before the US Federal Reserve announcement.

The 10-year Treasury yield now stands at 3.56% after reaching 3.604%, while the 2-year yield peaked at 3.992%, and is now hovering around 3.96%.

Caution, however, limited the dollar’s gains. Markets are concerned about the possibility that the Fed US Federal. raise interest rates by more than 75 basis points, given persistently high inflation. The central bank will present new economic projections, focused on growth and inflation expectations.

The US Federal Reserve will be the first central bank, but not the only one, to announce its monetary policy decision in the next 48 hours. The Bank of Japan, the Swiss National Bank and the Bank of England are the most relevant when making decisions after the Fed.

The EUR/USD pair failed to hold parity and settled around 0.9970. The GBP/USD pair is trading around 1.1380. Commodity-linked currencies were among the worst performers, falling against the dollar. USD/CAD is trading at 1.3360, while AUD/USD is down at 0.6690. The USD/JPY pair is holding around 143.60.

gold gave waysome land, standing at $1,664 a troy ounce. Crude oil prices also fell, with WTI now at $84 a barrel.

Asian stocks managed to post gains, but European indices closed in the red. Wall Street trimmed its weekly gains and also closed in the red.

Source: Fx Street

You may also like