The dollar managed to regain some of the ground lost in recent days thanks to firmer results from US data releases, which helped to somewhat allay concerns about a significant slowdown in the US economy, all ahead of the Fed’s interest rate decision on Wednesday.
Here’s what you need to know on Wednesday, September 18:
The US Dollar Index (DXY) reversed three consecutive daily declines helped by a decent bounce in US yields as investors continued to price in a 50bp rate cut by the Fed on Wednesday. The highlight event of the week will be the FOMC meeting on September 18, followed by the weekly MBA Mortgage Applications, Building Permits, Housing Starts and TIC Net Flows.
Renewed buying pressure from the Dollar kept EUR/USD price action contained in the low 1.1100s ahead of the FOMC meeting. Final inflation rate and construction output in the Eurozone will be released on September 18, along with speeches from ECB’s Buch and McCaul.
GBP/USD traded on the defensive and retreated from earlier peaks near 1.3230 in response to the data-driven rebound in the US Dollar. The UK inflation rate will be released on September 18.
USD/JPY rose to three-day highs and revisited the 142.00 vicinity on the back of fresh gains in the Dollar and higher US yields across the board. Trade Balance and Machinery Orders results will be released on September 18.
AUD/USD alternated gains and losses around 0.6750, hitting fresh multi-day highs despite the improved tone in the US Dollar. The Westpac Leading Index is expected on September 18 followed by the RBA Jones speech.
WTI prices came under pressure near the $70.00 per barrel mark as concerns over Chinese demand came back to the fore.
Gold prices saw their recent strong advance pared back on the back of a firm US dollar and a recovery in US yields. Silver prices extended Monday’s inconclusive price action, trading in a tight range below the $31.00 per ounce mark.
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.
