Forex Today: Investors now look at US PCE amidst Fed rate cut bets

Pablo Piovano FXStreet

The Greenback navigated quite a bearish session on Thursday, giving away a big chunk of Wednesday’s gains despite higher yields and amidst a persistently firm sentiment in the risk-associated universe.

Here is what you need to know on Friday, September 27:

The US Dollar Index (DXY) dropped markedly and revisited the a100.50 region in a context favourable to the risk-related galaxy. The PCE data will gather all the attention seconded by the final print of the Michigan Consumer Sentiment, Personal Income and Personal Spending.

EUR/USD managed to regain some composure and faded most of Wednesday’s steep retracement, revisiting the 1.1190 zone. The German labour market report takes centre stage, along with the final Consumer Confidence, Consumer Inflation Expectation and Economic Sentiment. In addition, the ECB’s Cipollone and Lane are due to speak.

GBP/USD reclaimed the 1.3400 barrier and above and clinched fresh yearly peaks on the back of the better tone in the risk-associated space. The next important data release across the Channel will be the GDP figures on September 30 along with Mortgage Approvals.

USD/JPY rose to three-week highs north of the 145.00 mark before giving away most of those gains towards the end of the day. Inflation figures in Tokyo are due along with weekly Foreign Bond Investment figures and the final Coincident Index and Leading Economic Index.

AUD/USD rose markedly and flirted once again with the key 0.6900 barrier on the back of news of fresh stimulus in China and the vacillating tone in the greenback. Next on tap in Oz will be the Housing Credit figures, and Private Sector Credit.

Another negative day saw prices of WTI tumble below the $67.00 mark per barrel to clinch new two-week lows on the back of OPEC+ plans to hike oil output.

Gold prices maintained their uptrend well in place and clocked an all-time high near the $2,690 mark per ounce troy despite higher US yields. Silver followed suit and climbed to the $32.70 zone per ounce for the first time since December 2012.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.