Forex Today: Dollar marches higher on cautious mood amid inflation concerns, China's techlash

Here is what you need to know on Monday, September 13:

Markets have kicked off the week with minor gains after a down week. Uncertainty about US inflation, China's tech crackdown and worries about covid and infrastructure. The dollar is gaining ground across the board. Cryptos are on the back foot. 

Cautious mood: S&P 500 futures are little changed after stocks eroded previous gains last week. Concerns about US inflation remain prevalent after Friday's relatively high producer price figures and ahead of Tuesday's all-important release of consumer prices

Federal Reserve officials are now officially in their "blackout" mode ahead of next week's decision. Analysts expect the Fed to refrain from tapering their bond-buying scheme next week but to make a move later in the year. Apart from inflation figures, retail sales and consumer sentiment statistics are eyed. 

US infrastructure spending plans are up in the air as Democrats are divided on raising corporate taxes and as conservative Democrat Senator Joe Manchin rejects the top line of the $3.5 trillion price tag. 

Techlash: Chinese authorities are reportedly considering breaking up Alipay, one of the largest payment companies. It comes on the heels of Beijing's other efforts to curb the power of large tech companies and cools sentiment. Reports of new COVID-19 clusters also add to the damp mood.

German elections: Center-left candidate Olaf Scholz solidified his position as the leader to inherit Angela Merkel after the third televised debate. He refrained from ruling out a coalition with the radical left, and that is marginally weighing on EUR/USD, which is trading under 1.18.

Last week, the European Central Bank announced the slowing down of its bond-buying scheme but insisted it is only a "recalibration" and not a material change. More significant changes are due next 

How the ECB can taper without raising rates:  Deny, deny, deny

GBP/USD is hovering above 1.38 as UK Prime Minister Boris Johnson is set to announce changes to the country's covid policy and as cases remain elevated. 

Gold is trading under $1,800 as US 10-year Treasury yields hold up around 1.33%. Oil is trading at around $70. Goldman Sachs said the global oil market is set to "rally significantly" 

Cryptocurrencies: Bitcoin is trading under $44,000 Etehreum below $3,300 and ADA below $2.50. Digital assets are on the back foot once again, with some citing Korean regulation as the catalyst. Cryptos suffered a "flash-crash" last week as El Salvador made Bitcoin a legal tender. 

More: Central banks exercise the pandemic option and keep markets waiting

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD holds above 1.1700 but the upside is limited

The EUR/USD pair flirted with 1.1750 but was unable to retain its modest intraday gains. Now trading in the 1.1720 price zone, bears retain control ahead of the US central bank monetary policy decision.


GBP/USD: Pressure mounts ahead of central banks’ announcements

The Fed and the BoE will make announcements this week. UK public inflation expectations are up for this year and the upcoming ones. GBP/USD is technically bearish in the near term, poised to retest August monthly low.


Gold: Further advances depend on the Fed

A better market mood put pressure on the American currency. The US Federal Reserve will announce its monetary policy decision on Wednesday. Gold advanced for a second day in a row, but additional gains are in doubt.

Gold News

Shiba Inu bulls can't hold SHIB from dropping to $0.000006

Shiba Inu price has fallen -28% over the past four trading sessions. Bears remain in control as bulls fail to complete a breakout above $0.000008. Bulls must hold $0.000007 to prevent a drop towards $0.000006.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question for the Fed in its all-important September meeting. The bank buys $120B worth of bonds every month and it is set to reduce the pace at some point – the first step toward raising interest rates. 

Read more