Here’s what you need to know on Friday, September 27:
The risk-on sentiment seen in global markets on Thursday extends into Friday, as a series of Chinese stimulus measures continue to lift investor confidence. The People’s Bank of China (PBOC) finally reduced the reserve requirement ratio (RRR), the minimum required capital that banks must keep in reserve, by 50 basis points (bps), effective Friday. The Chinese central bank also cut the seven-day repo rate to 1.5% from 1.7%.
Despite risk-on rally in Asian indices and US S&P 500 futures higher, US Dollar looks to consolidate overnight recovery, boosted after a brief drop in early opening hours following dovish comments from the governor of the US Federal Reserve (Fed), Lisa Cook.
Cook said he “wholeheartedly supported a 50 bps rate cut,” adding that “the normalization of the economy, particularly inflation, is quite welcome.”
The Dollar suffered on Thursday as European and Wall Street stocks advanced on rate cut momentum, while mixed US jobless claims and durable goods orders data failed to inspire. to USD buyers.
Several Fed officials made their scheduled appearances on Thursday, including Fed Chairman Jerome Powell. However, only two of them spoke about monetary policy. Fed Governor Cook supported the 50 bps rate cut move in September, while Governor Michelle Bowman stuck to her hawkish rhetoric.
Markets are currently pricing in around a 50% chance of a 50 basis point (bps) rate cut by the Fed in November, according to CME Group’s Fed Watch tool, up from more than 60% seen on the day. former.
The next directional move in the USD depends on the upcoming US core personal consumption expenditure (PCE) price index, the Fed’s most preferred inflation indicator, which could confirm bets of an upcoming significant rate cut . Additionally, end-of-quarter flows could come into play and shake up the markets.
US Dollar PRICE Today
The table below shows the percentage change of the US Dollar (USD) against major currencies today. US dollar was the strongest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.14% | 0.25% | 1.01% | 0.21% | 0.30% | 0.45% | 0.25% | |
| EUR | -0.14% | 0.11% | 0.85% | 0.04% | 0.17% | 0.30% | 0.13% | |
| GBP | -0.25% | -0.11% | 0.74% | -0.05% | 0.06% | 0.22% | 0.02% | |
| JPY | -1.01% | -0.85% | -0.74% | -0.79% | -0.67% | -0.53% | -0.70% | |
| CAD | -0.21% | -0.04% | 0.05% | 0.79% | 0.08% | 0.26% | 0.06% | |
| AUD | -0.30% | -0.17% | -0.06% | 0.67% | -0.08% | 0.16% | -0.04% | |
| NZD | -0.45% | -0.30% | -0.22% | 0.53% | -0.26% | -0.16% | -0.19% | |
| CHF | -0.25% | -0.13% | -0.02% | 0.70% | -0.06% | 0.04% | 0.19% |
The heat map shows percentage changes for 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 box will represent USD (base)/JPY (quote).
In the foreign exchange market, USD/JPY remains volatile, falling as low as 144.75 on Tokyo inflation data before rebounding sharply past 146.00. The Japanese Yen sees a sharp sell-off as Japan’s Liberal Democratic Party (LDP) leadership race heads to a runoff between former defense minister Shigeru Ishiba and economic security minister Sanae Takaichi.
The higher-yielding Australian dollar shrugged off risk sentiment as the AUD/USD corrected from 19-month highs in a broad US Dollar rebound. The Aussie was last seen trading at 0.6870.
USD/CAD is bouncing towards 1.3500, as the price of oil It is at a two-week low. Black gold extends the bearish trend as markets expect an increase in oil production from Libya and OPEC+. WTI is currently trading modestly flat on the day to trade near $67.25.
GBP/USD Consolidating weekly gains near 1.3400, slightly on the defensive as the US Dollar rally offset the risky market profile.
EUR/USD maintains losses below 1.1200 in early European trading, having faced rejection at that level on Thursday. Euro remains pressured by latest Reuters reports, citing sources ECB moderates likely to fight for a rate cut in October after weak data, while push for an October rate cut likely to face resistance from euro hawks ECB advocating a pause.
The price of Gold remains stable below the all-time high of $2,686. Overbought conditions on the daily gold chart are keeping buyers on the defensive.
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.
