Here’s what you need to know on Wednesday, September 4:
Major currency pairs continue to trade within familiar ranges early on Wednesday as markets await the next catalyst. Eurostat will publish the Producer Price Index (PPI) data for July in the European session. In the second half of the day, the July Goods Trade Balance, Factory Orders and JOLTS Job Openings data will be the highlight of the US economic docket. During American trading hours, the Bank of Canada (BoC) will announce monetary policy decisions and the Federal Reserve will publish its Beige Book later in the session.
Australian data showed in the Asian session that the country’s Gross Domestic Product (GDP) expanded at an annual rate of 1% in the second quarter, in line with market expectations. Meanwhile, China’s Caixin Services PMI edged down slightly to 51.6 in August from 52.1 in July. Following Tuesday’s sharp drop, AUD/USD remains stable around 0.6700 early Wednesday.
The BoC is expected to cut the policy rate by 25 basis points (bps) to 4.25% following its September policy meeting. USD/CAD rose 0.4% on Tuesday and closed the fifth consecutive trading day in positive territory. The pair remains in a consolidation phase slightly below 1.3550 in the European morning.
US Dollar PRICE This week
The table below shows the percentage change of the US Dollar (USD) against the major currencies this week. The US Dollar was the strongest currency against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.10% | 0.11% | -0.83% | 0.40% | 0.82% | 0.98% | -0.13% | |
| EUR | 0.10% | 0.23% | -0.74% | 0.47% | 0.92% | 1.07% | -0.05% | |
| GBP | -0.11% | -0.23% | -0.97% | 0.23% | 0.66% | 0.87% | -0.30% | |
| JPY | 0.83% | 0.74% | 0.97% | 1.18% | 1.68% | 1.94% | 0.62% | |
| CAD | -0.40% | -0.47% | -0.23% | -1.18% | 0.46% | 0.58% | -0.53% | |
| AUD | -0.82% | -0.92% | -0.66% | -1.68% | -0.46% | 0.14% | -0.96% | |
| NZD | -0.98% | -1.07% | -0.87% | -1.94% | -0.58% | -0.14% | -1.11% | |
| CHF | 0.13% | 0.05% | 0.30% | -0.62% | 0.53% | 0.96% | 1.11% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the chart will represent the USD (base)/JPY (quote).
He United States Dollar (USD) The U.S. dollar touched its highest level since Aug. 20 at 101.91 on Tuesday but erased a portion of its gains to close the day marginally higher. The index remains above 101.50 early Wednesday and the 10-year U.S. Treasury yield is holding near 3.8% after falling more than 2% on Tuesday. Meanwhile, U.S. stock index futures were seen losing between 0.4% and 0.8%.
EUR/USD fell on Tuesday but managed to recover above 1.1050 on Wednesday. The monthly PPI in the euro zone is forecast to rise by 0.3% in August.
GBP/USD recorded small losses on Tuesday. The pair is holding steady slightly above 1.3100 in the European session.
USD/JPY turned south and snapped a four-day winning streak on Tuesday. The pair remains under bearish pressure early on Wednesday and is trading around the 145.00 mark.
After failing to stabilize above $2,500, Gold closed in negative territory on Tuesday. XAU/USD continues to decline in early trading on Wednesday and was last seen trading below $2,490.
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.
