This is what you need to know to trade today tuesday september 20:
Major currency pairs move in known ranges on Tuesday as investors remain on the sidelines ahead of key central bank decisions. The DXY dollar index, which closed broadly unchanged on Monday, is trading sideways above 109.50 as market sentiment improves modestly with US stock index futures up 0.2%-0.3% at the start of trading. European session. Later in the day, data on building permits and housing starts for august will figure in the American economic calendar. The figures of the consumer price index Canadian CPI they will also be closely watched by market participants.
Wall Street Journal author Nick Timiraos, who correctly leaked the 75 basis point (bps) rate hike in July, published an article late on Monday and refrained from suggesting that the Fed could raise its policy rate by 100 bps on Wednesday. The dollar lost some interest after this event and the DXY index erased its daily gains. The 10-year US Treasury bond yield remains relatively quiet near 3.5% on Tuesday.
In the early hours of the day, Sweden’s central bank, the Riksbank, has announced that it is raising its interest rate by 100 basis points, to 1.75%, compared to a Reuters estimate of a 75 basis point rate hike. As an initial reaction, EUR/SEK has fallen to a fresh daily low of 10.7305, but has managed to recover to the 10.8000 zone.
During the Asian session, the minutes of the September monetary policy meeting Reserve Bank of Australia (RBA) showed that those responsible for monetary policy considered that the pace of rate hikes was getting stronger. The reaction of AUD/USD The RBA release was very muted with the pair holding steady around 0.6730.
It is expected that the Annual Canadian CPI falls to 7.4% in August from 7.6% in July. While waiting for these data, the pair USD/CAD trades in a tight range near 1.3250.
The EUR/USD it rebounded in the second half on Monday and closed in positive territory above parity. The pair is now trading with small daily gains near 1.0030.
The GBP/USD is holding on to modest daily gains around 1.1450 early on Tuesday. “Negotiations with the US are not currently taking place and I have no expectation that they will start in the short or medium term.British Prime Minister Liz Truss has said in relation to a possible trade deal with the US, but these comments were largely ignored by market participants.
Data from Japan revealed on Tuesday that the National CPI rose to 3% in August from 2.6% in July. Although this data was stronger than the market expectation of 2.6%, the USD/JPY managed to hold firm and is now up 0.2% on the day at 143.50.
The Prayed It is struggling to attract buyers and is trading in negative territory, slightly above $1,670. The resilience of the US 10-year bond yield makes it difficult for XAU/USD to gain recovery momentum.
The Bitcoin shook off the downside pressure late on Monday but has yet to recapture $20,000. The ethereum moved higher early on Monday but failed to retain its bullish momentum early on Tuesday. At time of writing, ETH/USD is down 1% on the day at $1,360.
Source: Fx Street
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