Forex Today: Big central bank week starts quietly

Eren Sengezer FXStreet

Here is what you need to know on Monday, September 18:

Financial markets stay relatively calm to begin the new week as investors gear up for big central bank policy meetings this week. The economic docket will not feature any high-tier data releases on Monday. The People's Bank of China and the Federal Reserve will announce interest rate decisions on Wednesday, followed by the Swiss National Bank, the Bank of England and the Bank of Japan.

After posting gains for the ninth straight week, the US Dollar Index edges lower early Monday. Meanwhile, US stock index futures trade modestly higher and the 10-year US Treasury bond yield holds steady above 4.3%.

US Dollar price today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Japanese Yen.

	USD	EUR	GBP	CAD	AUD	JPY	NZD	CHF
USD		0.02%	0.03%	-0.08%	-0.01%	-0.15%	-0.12%	-0.03%
EUR	-0.04%		0.00%	-0.13%	-0.04%	-0.19%	-0.15%	-0.05%
GBP	-0.03%	0.00%		-0.13%	-0.04%	-0.21%	-0.15%	-0.07%
CAD	0.09%	0.11%	0.11%		0.06%	-0.08%	-0.03%	0.06%
AUD	0.01%	0.05%	0.05%	-0.07%		-0.16%	-0.11%	-0.02%
JPY	0.14%	0.15%	0.18%	0.08%	0.14%		0.02%	0.12%
NZD	0.11%	0.14%	0.15%	0.03%	0.11%	-0.05%		0.10%
CHF	0.01%	0.03%	0.05%	-0.06%	0.01%	-0.15%	-0.10%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

Following the sharp decline witnessed after the European Central Bank's (ECB) policy decisions last week, EUR/USD stays in a consolidation phase above 1.0650 in the early European session. Germany's Bundesbank is scheduled to release its monthly report later in the day.

GBP/USD registered a daily close below 1.2400 for the first time since late May on Friday. The pair clings to small recover gains near that level early Monday. Ahead of the BoE's policy decisions on Thursday, the UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday.

AUD/USD holds steady at around 0.6450 following the previous week's choppy action. In the early trading hours of the Asian session on Tuesday, the Reserve Bank of Australia (RBA) will release the minutes of the August policy meeting, at which officials decided to leave the cash rate unchanged at 4.1%.

NZD/USD trades in positive territory above 0.5900 early Monday. The inflation outlook for the year ending March 2024 has been revised higher. The New Zealand Institute of Economic Research (NZIER) unveiled revised economic projections early in the day and said that the annual CPI inflation is forecast to ease to 4.3% in the year ending March 2024 before decreasing to 2.4% in 2025.

USD/JPY came under modest bearish pressure early Monday and retreated to the 147.50 area.

Gold price staged a decisive rebound on Friday and erased all of its weekly losses. Early Monday, XAU/USD holds its ground and trades in positive territory near $1,930 amid retreating US yields.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD defends 1.3300 after strong UK PMI data

Following Thursday's sharp decline, GBP/USD clings to small gains above 1.3300 in the American session on Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair's upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US July PMI data failed to trigger relevant price action.

EUR/USD remains below 1.1400 after mixed US PMIs

EUR/USD pressures daily lows below the 1.1400 mark in the American session on Friday. Mixed S&P Global PMIs, as manufacturing output contracted while services activity expanded in July, triggered no relevant market reaction. The focus remains in Middle East developments and inflation-related concerns.

Gold holds above $4,050 but momentum still missing

Gold builds on its modest intraday bounce and climbs above the $4,050 level on Friday, hitting a fresh daily high amid a modest US Dollar pullback. The fundamental backdrop, however, warrants some caution before confirming that the pullback from an over two-week high, touched on Wednesday, has run its course and positioning for any meaningful upside.

Ethereum: Derivatives interest in ETH improves, but signs of caution remain

Ethereum is hovering slightly below the $1,900 level, down 3% on Thursday following a slight expansion in derivatives interest. The top altcoin's open interest has increased to 14.60 million ETH, marking a 600K ETH increase over the past two days and its highest level since June 7.

XRP retreats as ETF interest cools

Ripple (XRP) slides toward the short-term $1.10 support on Friday, as broader crypto market sentiment weighs on crypto assets. The sell-off mainly stems from fears of inflation in the United States (US) amid the ongoing war in the Middle East and rising Oil prices.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.