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Forex Today: The rise of the Dollar takes a pause while risk sentiment improves

Here’s what you need to know to trade today Wednesday September 27:

He DXY Dollar Index has entered a consolidation phase above 106.00 early Wednesday after posting gains in the previous three days and touching a new high of 2023 in the process. The modest improvement seen in risk sentiment makes it difficult for the US Dollar (USD) to continue outperforming its rivals in the middle of the week. August Durable Goods Orders high on the US economic agenda and the US Treasury Department will hold an auction of 5-year Treasury bonds later in the day.

Although US data on Tuesday revealed a further deterioration in consumer sentiment in September and a sharp drop in new home sales in August, the dollar managed to hold firm amid the bearish action on Wall Street. During the European morning, US stock index futures gain ground and are now up between 0.3% and 0.4%.

Dollar Quote this week

The following table shows the percentage change of the United States Dollar (USD) against the main currencies this week.

USD 0.78% 0.76% 0.29% 0.92% 0.38% 0.36% 0.99%
EUR -0.78% -0.01% -0.48% 0.15% -0.38% -0.40% 0.23%
GBP -0.78% 0.01% -0.46% 0.17% -0.38% -0.39% 0.24%
CAD -0.30% 0.47% 0.45% 0.62% 0.08% 0.06% 0.69%
AUD -0.92% -0.13% -0.14% -0.60% -0.57% -0.57% 0.08%
JPY -0.38% 0.41% 0.39% -0.09% 0.55% -0.01% 0.62%
NZD -0.37% 0.39% 0.37% -0.06% 0.57% 0.02% 0.63%
CHF -1.00% -0.23% -0.24% -0.69% -0.08% -0.61% -0.64%

The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).

Inflation in Australia rose to 5.2% annually in August, as reported by the Australian Bureau of Statistics in the Asian session. This decision coincided with market expectations and the pair AUD/USD had difficulty gaining traction. At the time of writing, the pair is trading slightly lower, below 0.6400.

He USD/JPY continued to rise and surpassed the 149.00 level on Wednesday. The Bank of Japan’s minutes from the September monetary policy meeting showed that members agreed to maintain the current monetary relaxation to achieve the price objective in a stable and sustainable way. Meanwhile, Japanese Finance Minister Shunichi Suzuki repeated that they are urgently watching developments in the currency market.

He EUR/USD recorded its lowest daily close since February on Tuesday, below 1.0600. Early on Wednesday, the pair consolidates its weekly losses above 1.0550.

He GBP/USD fell to a new multi-month low at 1.2136 late in the Asian session on Wednesday, before stabilizing near 1.2150.

He USD/CHF rose towards 0.9200 and hit its highest level in six months on Wednesday. The Swiss National Bank (SNB) will publish its Quarterly Bulletin for the third quarter later in the day.

The price of Gold extended its weekly decline and fell below $1,900 for the first time in five weeks early on Wednesday. The 10-year US Treasury yield remains stable at multi-year highs around 4.5%, not allowing XAU/USD to stage a rebound.

Source: Fx Street

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