Here is what you need to know for Friday, September 16:
The US dollar keeps its dominance as the case for ongoing aggressive hikes by the Federal Reserve dominates the markets. DXY, which measures the greenback vs. a basket of major rivals ended the North American session flat but put in a high of 109.21 within the upper end of this week's bullish channel having climbed from a low of 109.42
Retail Sales moved up 0.3% last month and the US dollar has held near recent peaks, supported by the view that the Federal Reserve will keep tightening policy aggressively. The data of late, including this week's surprise increase in consumer prices in August, has reinforced the bullish case for the greenback as investors price in a third consecutive 75-basis-point rate hike next Wednesday.
Meanwhile, the US 10-year yield climbed 5bps to 3.45%, and key majors, such as the yen came back under pressure despite authorities that verbally intervened, jawboning the currency following sharp declines.USD/JPY fell to 143.33.
GBP/USD bulls were attempting a correction from an important support area near the midpoint of the 1.1400 area, with the price recovering from a low of 1.1462 and now testing the bear's commitments at 1.1500.
EUR/USD remained trapped between a key 4-hour channel and consolidated ahead of 1.0025 and 0.995 breakout levels. On an hourly basis, the pair moved sideways, coiling for a move either way.
As for the Australian dollar, it traded between a daily high at around 0.6770 and the bears moved in on the key 0.67 level, piercing it to a low of 0.6899. The price levelled out after yesterday's employment report was solid, adding 33.5K employments in August, in line with forecasts, while the unemployment rate rose to 3.5% from 3.4%. ANZ bank analysts expect that the Reserve Bank of Australia (RBA) will lift rates by 50 bps.“An overall solid labor market report adds to the case made by the strong NAB business survey and US CPI data earlier this week for the RBA to hike the cash rate 50bp in October,” said analysts at ANZ. This brings the market into a consolidation phase into the weekend.
On the commodities front, WTI fell to $84.9/bbl as the US Department of Energy said their restocking of oil reserves would likely involve deliveries after the fiscal year 2023. Gold slipped 1.4% to $1,662.
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
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.