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Forex Today – Asian Session: Euro falls after moderate ECB rate hike; oil and Wall Street rise

During the Asian session, New Zealand business PMI and Chinese data on retail sales and industrial production will be released. Later, Germany will release wholesale inflation, eurozone labor costs and the Bank of England will report on inflation expectations. In the United States, the Empire State manufacturing index, Industrial Production and the University of Michigan consumer confidence survey will be published.

Here’s what to know on Friday, September 15:

He The Dollar Index on Thursday recorded its highest daily close since March, above 105.30. US stocks rose, with the Dow Jones gaining 0.96% and the Nasdaq gaining 0.81%.

US data showed that the Producer Price Index rose more than expected in August, with the annual rate rising from 0.8% to 1.6%. The underlying annual rate fell from 2.4% to 2.2%. Retail sales rose 0.6% in August, beating expectations for a 0.2% increase. Initial jobless claims rose from 217,000 to 220,000, below the market consensus of 225,000.

Overall, US data shows that the economy remains resilient and that inflation picked up in August. However, these figures did not significantly alter the monetary policy expectations of the Federal Reserve (Fed). The Fed is expected to keep interest rates unchanged next week.

On Friday, the New York Empire State Manufacturing Index, Industrial Production and the University of Michigan survey of consumer confidence (September – preliminary) will be released in the United States.

The European Central Bank (ECB) raised its official interest rates by 25 basis points. However, it was considered a moderate hike as it signaled that further rate hikes are not likely in the near future. Lagarde’s statement offered no surprises and mentioned that some members preferred a pause in the September meeting. Consequently, the euro lost ground across the board following the statement.

Commerzbank analysts:

Monetary policy is taking effect and slowing growth, although ECB experts do not yet expect a recession. We assume that central bankers will not raise interest rates further. At the same time, however, we continue to expect that the ECB will not lower interest rates next year, as underlying inflationary pressure remains too high.

EUR/USD resumed its bearish trend and fell to the 1.0630 area. It recorded the lowest daily close in months and remains under pressure. He EUR/CHF suffered its worst day in months, falling from weekly highs at 0.9600 to 0.9530, with a crucial support zone between 0.9500 and 0.9520.

On Friday, Germany will report the wholesale price index. The Eurogroup meets in Spain, and Eurostat will publish labor cost data for the second quarter and trade data for July.

GBP/USD recorded the first daily close below the 200-day simple moving average since March, around 1.2400. The Bank of England will publish its inflation expectations survey on Friday.

Risk appetite provided a limited boost to antipodean currencies. Friday, China It will report industrial production and retail sales, so these numbers will have to be watched closely.

Despite the positive employment figures in Australia, the AUD/USD pair failed to stay above 0.6450 and lost momentum during the American session.

NZD/USD reached weekly highs but then retreated towards the 0.5900 area. He continues to move sideways with a slight short-term bullish bias, although the overall sentiment remains bearish.

The Loonie outperformed, helped by the extension of the recovery in crude oil prices. A barrel of WTI surpassed $90.00, reaching its highest level since November. USD/CAD lost ground for the fifth day in a row. It is hovering around 1.3500, and a consolidation below that level could open the door to more losses.

He Gold ended sideways $1,910, after having tested the $1,900 zone. The silver It lost ground, but ended at $22.60, far from the one-month low of $22.28.

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Source: Fx Street

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