Forex Today: Dollar starts the week on a positive note, DXY at highest since November


The US Dollar Index is flirting with the 106.00 area at monthly highs. The economic calendar for the Asian and European sessions is empty on Tuesday. Later in the day, the US will release housing and consumer confidence data.

Here is what you need to know on Tuesday, September 26:

The US Dollar Index (DXY) rose to 106.09, reaching the highest level since November, before pulling back to 105.90. The Greenback remains firm, supported by cautious market sentiment and higher US Treasury yields. The 10-year yield climbed to 4.54%, a level not seen since October 2007.

The expectation of high interest rates persisting for longer is based on the resilience of the US economy. Market participants are eagerly awaiting the release of the Federal Reserve's preferred inflation gauge, the Core Personal Consumption Expenditures Price Index, on Friday.

During the American session, the Chinese Yuan consolidated its losses amid ongoing concerns about the Evergrande situation, which will likely continue to be in the spotlight.

EUR/USD posted its lowest close since March, falling below 1.0600 after five consecutive days of decline. The Euro weakened despite European Central Bank (ECB) President Lagarde's comments at the European Parliament, where she mentioned that rates will remain restrictive for as long as necessary. EUR/GBP pulled back from 0.8700 to 0.8670.

The Pound dropped to fresh lows against the US Dollar, briefly reaching levels below 1.2200. The currency is still affected by the Bank of England's dovish stance in its recent policy decision.

USD/JPY broke above 148.50, reaching the highest levels since October and approaching 149.00. Despite concerns about an intervention from Japanese authorities, the pair's rally remains largely unabated.

The Canadian Dollar outperformed on Monday, with USD/CAD modestly falling to 1.3450. In contrast, the Australian Dollar lagged among commodity currencies, with AUD/USD approaching 0.6400. However, the pair trimmed its losses and settled around 0.6420.

Metals tumbled, with Gold breaking below the $1,920 level and approaching the $1,915 support area. Silver also experienced a decline of 1.85%, falling from $23.55 to the $23.00 mark.

 


Like this article? Help us with some feedback by answering this survey:

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD keeps the offered bias near 1.0600

EUR/USD keeps the offered bias near 1.0600

Further US Dollar's strength keeps EUR/USD well under pressure and motivates it to approach the key 1.0600 region, where the 2024 low also sits. Looking at the Greenback, the Trump-led rally continues to fuel the uptrend to new multi-month tops.

EUR/USD News
GBP/USD revisits fresh lows in the sub1.2800 zone

GBP/USD revisits fresh lows in the sub1.2800 zone

Mixed results from the UK jobs report and the continuation of the upside impulse in the Greenback send GBP/USD to the area below 1.2800 the figure for the first time since mid-August.

GBP/USD News
Gold bounces off lows near $2,590

Gold bounces off lows near $2,590

Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.

Gold News
Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin hit a new all-time high (ATH) of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead.

Read more
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out

Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium

What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures