Forex Today: Dollar shrugs off weak inflation, China worries mount, cryptos rise

Yohay Elam FXStreet

Here is what you need to know on Wednesday, September 15:

Optimism from weaker US inflation figures has made way to concerns about the US and also the Chinese economy, following weak data. Updated reads on UK and Canadian inflation and US industrial output are of interest. Cryptocurrencies have been marching higher while oil and gold have consolidated their gains.

Raging inflation debate: the US Core Consumer Price Index (Core PCI) missed estimates with 4% YoY initially sending the dollar down on hopes that the Federal Reserve delays tapering of its bond-buying scheme. While it convinced some that higher inflation was a result of rapid reopening and thus transitory others see its stagflationary – effects – a cooldown of the economy.

US Inflation Analysis: Team Transitory wins, dollar loses, why the trend may extend

US Consumer Price Index: Is stagflation next?

However, concerns about high stock valuations, covid and other factors resulted in another down day for shares, sending the safe-haven dollar back up – despite falling US Treasury yields. EUR/USD is hovering around 1.18 – dismissing upbeat comments from European Central Bank Christine Lagarde – AUD/USD is closer to 0.73 while gold is holding some of its gains around $1,800.

Chinese weakness: The world's second-largest economy reported a disappointing 2.5% YoY increase in Retail Sales. Industrial output also missed with 5.3%, weighing on prices of some commodities. The Delta covid wave is taking its toll. Beijing's ongoing crackdown on its tech companies, Evergrande's financial troubles, and another North Korean missile launch all added to the damp mood.

UK CPI is set to leap from 2% to 2.9%, adding pressure on the Bank of England to raise interest rates. The UK and the EU remain at odds about the Northern Irish protocol. GBP/USD is trading back around 1.38 amid dollar strength.

UK Inflation Preview: Soaring prices may give sterling a shot in the arm, open door to rate hike

USD/CAD is trading around 1.27 ahead of Canada's release of its inflation figures. WTI Crude Oil is holding onto gains, trading around $71 ahead of weekly inventory data.

Cryptocurrencies have been marching forward, with Bitcoin trading around $47,000 and Ethereum near $3,400. Ada is stable around $2.40 and Solana bounced from an earlier dip.

More Gold Price Forecast: 200-DMA holds the key for XAU/USD bulls

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

GBP/USD holds recovery gains near 1.3400 despite soft UK CPI data

GBP/USD clings to recovery gains near 1.3400 in European trading on Wednesday. The UK annual Consumer Price Index (CPI) inflation cooled to 2.6% in June against the market forecast of 2.7%, failing to deter the British Pound's rebound from weekly troughs. However, the pair's further upside could be limited by ongoing Mideast tensions and sustained US Dollar demand as a haven.

EUR/USD gains ground above 1.1400 on hawkish ECB tone

The EUR/USD pair holds positive ground near 1.1410 during the early European trading hours, bolstered by a hawkish tone from the European Central Bank. However, the potential upside for the major pair might be limited amid escalating military tensions and recent retaliatory airstrikes between the US and Iran.

Gold: Strong recovery might face roadblock as oil price extends gains

Gold price extends its winning streak for the third trading day on Wednesday, trading 1.5% higher to near $4,140 during the Asian session. The precious metal recovered strongly in the past few trading days from its three-week low of $3,959.80 as traders scaled back Federal Reserve’s interest rate hike expectations for the monetary policy meeting next week.

Bitcoin holds firm as ONDO and GRAM lead rally

The broader cryptocurrency market is witnessing an easing of bearish momentum, with Bitcoin holding above $66,000 on Wednesday. Altcoins including Ondo and Gram, formerly known as Toncoin, are leading gains over the last 24 hours, driven by new features. Bitcoin holds above $66,000 on Wednesday, following a 2% surge the previous day.

Hyperliquid hits a make-or-break zone amid easing demand

Hyperliquid (HYPE) hovers around $60 capped below its 50-day Exponential Moving Average at $62.70. The everything exchange token is losing its retail demand as funding rates fluctuate near zero amid elevated long liquidations.

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.