Forex Today: Powell boosts the greenback

Valeria Bednarik FXStreet

What you need to know on Thursday, September 23:

The greenback ended Wednesday higher against most major rivals, as the US Federal Reserve was quite hawkish, hinting at clearer definitions on tapering timing in its upcoming November meeting. “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted,” the FOMC’s statement said.

Chief Jerome Powell said that, while the inflation threshold for tapering has already been achieved, the one for employment is only seen by “many” FOMC members but not all. "Many on FOMC think the test for employment to taper has been met; others think it is close," he said. Among other things, Powell said that the Fed can easily move ahead at the next meeting... or not. He added that he does not need to see an impressive employment report, just a good one to get convinced the job sector has reached the desired threshold.

EUR/USD peaked at 1.1755, but finally pierced the 1.1700 level, trading in the 1.1690 price zone. GBP/USD trades around 1.3620, approaching August low at 1.3601. The USD/JPY pair advanced, currently trading around 109.80.

Commodity-linked currencies closed the day little changed vs the greenback, as gains in global equities have limited their slumps. AUD/USD hovers around 0.7240, while USDCAD is marginally lower at around 1.2770.

Spot gold finished the day in the red at $1,767.50 a troy ounce. Crude oil prices were up, after commercial crude oil inventories in the US decreased by 3.5 million barrels in the week ending September 17. WTI trades around $ 72.00 a barrel.

Robinhood to launch crypto wallets for Bitcoin, Ethereum, and Dogecoin by October

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

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.