Forex Today: No changes expected from the BoJ

The US Dollar (USD) clocked marked gains on Thursday, as market participants parsed Wednesday’s rate cut by the Federal Reserve and the cautious message from Chair Powell at his subsequent press conference.

Here's what to watch on Friday, September 19:

The US Dollar Index (DXY) added to Wednesday’s post-Fed bounce, challenging three-day peaks near the 97.60 level. The Chicago Fed National Activity Index and speeches by the Fed’s Musalem and Hammack are due on September 22.

EUR/USD further extended its correction from Wednesday’s highs, slipping back to the 1.1750 area, or three-day lows. Germany’s Producer Prices are due, seconded by speeches by the ECB’s Montagner and Tuominen and the EuroGroup and ECOFIN meetings.

GBP/USD retreated to weekly troughs in the 1.3530 zone, adding to Wednesday’s pullback as investors digested the BoE’s rate decision. The GfK Consumer Confidence will be released seconded by Retail Sales and Public Sector Net Borrowing.

USD/JPY gained momentum and surged to eight-day highs, successfully breaching the 148.00 barrier. The BoJ is broadly expected to keep its interest rate unchanged at 0.50%. In addition, the Japanese docket will feature the Inflation Rate and weekly Foreign Bond Investment figures.

AUD/USD added to the previous day’s pullback and retreated to weekly lows near the 0.6600 neighbourhood. Next on tap in Oz will be the flash S&P Global Manufacturing and Services PMIs on September 23.

Prices of WTI receded modestly on Thursday, reaching two-day lows near the $63.00 mark per barrel in response to reignited concerns over the health of the US economy.

Gold prices flirted with weekly troughs below the $3,630 mark per troy ounce following the sharp rebound in the Greenback and higher US yields. Silver prices dropped for the third straight day, revisiting the vicinity of the $41.00 mark per ounce.