What you need to take care of on Thursday, September 29:
The dollar stretched its rally throughout the first half of the day but changed course dramatically after Wall Street's opening. US government bond yields plummeted with that on the 10-year note, down roughly 20 bps, taking its toll on the American currency. The Dollar Index hit a record high of 114.78, later retreating towards the 112.60 price zone.
Several US Federal Reserve officials were on the wires, repeating the well-known message of another 75 bps coming up next, aiming for a top to Fed funds rate between 4.25% and 4.75% in the first quarter of 2023.
The EUR/USD pair plummeted to a 22-year low of 0.9535, extending later its intraday recovery to 0.9750, trading a handful of pips below the latter at the end of the day. The EU energy crisis maintains local authorities on their toes, and the EU Commission released a paper assessing gas price measures.
Also, ECB President Christine Lagarde participated in a US-European GeoEconomics forum and said they would continue to hike rates in the next several meetings. Additionally, Governing Council member Peter Kazimir and Bank of Latvia Governor, and ECB governing council member, Martins Kazaks were on the wires supporting a 75 bps rate hike in the October meeting.
The GBP/USD pair was quite volatile amid back and forth from the Bank of England. It managed to settle at around 1.0880 amid the broad greenback's weakness. The BOE decided to buy long-dated UK government bonds starting today to restore market conditions. It later confirmed that it could buy just £1.025 billion in the emergency QE operation, well below the planned £5 billion. Long-term yields plummeted with the announcement. The central bank also postponed the first gilt sale operations, supposed to start next week, to October 31 and proceed after that. The fiscal strategy was strong international criticism.
USD/JPY show little signs of life despite high volatility across the FX board, ending the day marginally lower at 114.10. Commodity-linked currencies beat the greenback, with AUD/USD trading at 0.6515 and USD/CAD at 1.3635. The USD/CHF pair also edged firmly lower, now hovering at around 0.9765.
Gold prices soared, and XAUUSD trades at $1,660 a troy ounce, its highest for the week. Crude oil prices recovered, and WTI settled at $82.00 a barrel.
Technically, the sharp downturns in major pairs seem corrective amid the last dollar's overbought conditions. However, the rallies need to continue in the upcoming session to confirm interim bottoms.
On Thursday, the focus will be on German inflation, expected to have raised by 9.4% YoY in September.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Whale Watching 102 - Don't become the bait
Like this article? Help us with some feedback by answering this survey:
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0900 as Q1 comes to an end

EUR/USD has lost its traction and declined below 1.0900 in the American session on Friday. Quarter-end flows seem to be allowing the US Dollar find some demand but the risk-positive market environment seems to be limiting the pair's downside ahead of the weekend.
GBP/USD trades below 1.2400, looks to post weekly gains

GBP/USD has edged lower after having tested 1.2400 earlier in the day but remains on track to end the third straight week in positive territory. The upbeat mood remains intact after soft PCE inflation data from the US, making it difficult for the US Dollar to continue to gather strength.
Gold tries to stabilize near $1,980 following earlier spike

Gold price has returned to the $1,980 area following a spike above $1,987 with the initial reaction to lower-than-expected PCE inflation figures from the US. Meanwhile, the benchmark 10-year US Treasury bond yield stays in the red near 3.5%, providing support to XAU/USD.
Will Dogecoin price pull an XRP and rally 60% next week?

Dogecoin price has been in a tight range bound movement since November 22. The recent recovery above the range low looks promising and hints at an explosive move for next week.
Week ahead – Nonfarm payrolls to set the tone for US dollar

With the banking turmoil receding, market participants will turn their attention back to economic releases. The spotlight will fall on the US employment report.