Forex Today: Inflation comes to the fore with US PPI and China’s CPI
|The US Dollar (USD) managed to leave behind a drop to multi-week lows and regain some upside traction on Tuesday, while market participants assessed the NFP Annual Revision amid speculation of a larger rate cut by the Federal Reserve at its meeting next week.
Here's what to watch on Wednesday, September 10:
The US Dollar Index (DXY) staged a comeback from seven-week lows near 97.20 amid a decent rebound in US yields across the curve and rising speculation of a potential 50 basis point rate cut by the Fed next week. The release of Producer Prices will take centre stage, seconded by the weekly MBA Mortgage Applications, and the weekly report on US crude oil stockpiles by the EIA.
EUR/USD corrected from recent highs and retested the 1.1720-1.1710 band as political concerns weighed down on the sentiment. The speech by the ECB’s Buch will be the only event on the domestic docket.
GBP/USD dropped modestly, fading the initial move to four-week highs in levels just shy of the 1.3600 barrier. The RICS House Price Balance will be the next data release on the UK calendar on September 11.
USD/JPY bounced off four-week lows around 146.30 as speculation over further rate hikes by the BoJ returned to the radar. The Reuters Tankan index, BSI Large Manufacturing index, Producer Prices, and weekly Foreign Bond Investment figures are all due on September 11.
AUD/USD clocked humble losses near 0.6600 following an early move to the area of YTD peaks. The Consumer Inflation Expectations and the speech by the RBA’s Connolly are expected on September 11.
Prices of the barrel of WTI flirted with three-day highs north of the $63.00 mark as traders shifted their attention to potential fresh sanctions on Russia.
Gold prices hit an all-time high past $3,670 per troy ounce, always underpinned by steady bets on rate cuts by the Federal Reserve. Silver prices receded from recent peaks, returning to the sub-$41.00 zone per ounce.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.