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Forex Today: US data takes centre stage pre-FOMC gathering

There was no respite for the selling mood hurting the Greenback on Monday, as market participants gave further credit to the likelihood that the Fed might surprise everybody and reduce its rates by a half percentage point on Wednesday.

Here is what you need to know on Tuesday, September 17:

The US Dollar Index (DXY) dropped for the third consecutive session, trading well south of the 101.00 support in combination with lower yields across the board. Retail Sales, Industrial and Manufacturing Production, Business Inventories, the NAHB Housing Market Index and the API’s report on US crude oil inventories are all due on September 17.

Further weakness in the US Dollar propelled EUR/USD well past the 1.1100 barrier to clock new multi-day highs. On September 17 comes the Economic Sentiment gauged by the ZEW institute in Germany and the broader Euroland.

GBP/USD resumed its uptrend and managed to surpass the 1.3200 hurdle, or two-week peaks. The next risk event on the UK docket will be the release of the Inflation Rate on September 18.

USD/JPY dropped and bounced off new lows near 139.60 following the sell-off in the Greenback and declining US yields. The Tertiary Industry Index is expected on September 17.

AUD/USD climbed further north of the 0.6700 yardstick and hit fresh two-week highs. Next on tap Down Under will be the release of the Westpac Leading Index on September 18.

WRTI prices maintained their bullish stance and trespassed the key $70.00 mark per barrel, up for the fourth day in a row.

Prices of Gold hit a record high and gradually approached the key $2,600 mark per barrel amidst the weaker Dollar and speculation of a larger rate cut by the Fed. Silver prices navigated an inconclusive session, hovering just below the $31.00 mark per ounce.

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Pablo Piovano

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

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