This is what you need to know to trade today monday september 19:
The dollar started the new week on a strong note, with the Dollar Index (DXY) rising to the 110.00 area after Friday’s pullback. Market caution ahead of key central bank events helps the dollar outperform rivals as a safe haven. US stock index futures are down 0.4-0.8%, while the 10-year US Treasury yield is steady around 3.45% heading into the European session. The German Bundesbank will release its monthly report and the NAHB housing index will be the only data to appear on the US economic docket later in the day.
On Friday, components of one-year and five-year inflation expectations from the University of Michigan Survey of Consumer Sentiment fell from August levels, forcing DXY to erase a small portion of its weekly gains. .
Over the weekend, US President Joe Biden stated that the US military would defend Taiwan in the event of an invasion by China. This comment seems to provoke an escalation of geopolitical tensions at the beginning of the new week: “We are going to control inflation,” Biden added in another order of things.
The EUR/USD closed the last three days of the previous week in positive territory and managed to close above parity on Friday. However, renewed dollar strength dragged the pair back below that level early on Monday.
The GBP/USD hit a new multi-decade low at 1.1350 last Friday, before a modest recovery. The pair is now trading near 1.1400. UK markets will be closed on Monday due to Queen Elizabeth II’s State Funeral.
The USD/JPY it reclaimed 143.00 early on Monday and was last seen rising towards 143.50. The Bank of Japan is expected to keep its monetary policy unchanged this week.
The Prayed fell to its weakest level since April 2020 at $1,653 on Friday, but ended up closing the day in positive territory amid profit-taking heading into the weekend. XAU/USD, however, failed to capitalize on Friday’s gains and was last seen losing 0.5% on the day below $1,670.
The Bitcoin lost more than 7% last week and came under heavy downward pressure early on Monday. BTC/USD last traded at its lowest level since December 2020, below $18,500, down nearly 7% on the day. The ethereum is trading at new two-month lows below $1,300 with a daily loss of almost 3%.
Source: Fx Street
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