Here is what you need to know on Thursday, September 21:
The US Dollar (USD) gathered strength in the late American session on Wednesday and the USD Index reached a fresh multi-month high above 105.50 early Thursday as investors reacted to the Federal Reserve's (Fed) hawkish rate pause. The Swiss National Bank (SNB) and the Bank of England (BoE) will announce policy decisions in the European session. Later in the day, the US economic docket will feature weekly Initial Jobless Claims and August Existing Home Sales data.
The Fed left its policy rate unchanged at 5.25%-5.5% as expected following the September policy meeting. The revised Summary of Economic Projections (SEP) - the so-called dot plot, however, confirmed that the US central bank was on track to raise the policy rate by another 25 basis points before the end of the year. Additionally, policymakers now see a total of 50 bps rate cuts next year, compared to the 100 bps rate cut projection seen in June's dot plot. While speaking in the post-meeting press conference, "majority of policymakers believe it is more likely than not another rate hike will be appropriate," FOMC Chairman Jerome Powell said.
US Dollar price this week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Pound Sterling.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.26% | 0.65% | -0.22% | 0.45% | 0.30% | -0.04% | 0.34% | |
| EUR | -0.26% | 0.40% | -0.49% | 0.20% | 0.04% | -0.29% | 0.09% | |
| GBP | -0.64% | -0.39% | -0.87% | -0.18% | -0.36% | -0.70% | -0.31% | |
| CAD | 0.22% | 0.47% | 0.85% | 0.64% | 0.51% | 0.17% | 0.55% | |
| AUD | -0.46% | -0.20% | 0.19% | -0.67% | -0.17% | -0.49% | -0.11% | |
| JPY | -0.30% | -0.06% | 0.34% | -0.50% | 0.17% | -0.34% | 0.06% | |
| NZD | 0.05% | 0.31% | 0.70% | -0.16% | 0.49% | 0.34% | 0.41% | |
| CHF | -0.34% | -0.09% | 0.32% | -0.56% | 0.12% | -0.05% | -0.40% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
USD/CHF gained traction and climbed above 0.9000 for the first time since early July on Thursday. The SNB is forecast to raise the policy rate by 25 basis points to 2%.
The BoE is forecast to lift its key rate to 5.5% from 5.25%. Following Wednesday's soft inflation readings, several institutions noted that they were now expecting the BoE to hold the rate steady. There will not be a press conference and markets will pay close attention to the vote split and scrutinize the policy statement. GBP/USD suffered large losses on Wednesday and continued to push lower on Thursday. At the time of press, the pair was trading at its weakest level since May slightly above 1.2300.
UK Interest Rate Decision Preview: BoE hike hangs in the balance as inflation cools.
After rising above 1.0700 during the European trading hours on Wednesday, EUR/USD reversed its direction in the late American session and closed the day in negative territory. The pair extended its slide early Thursday and touched its lowest level since March below 1.0620 before recovering toward 1.0650.
USD/JPY gathered bullish momentum and advanced to its strongest level since November above 148.00. The Bank of Japan (BoJ) will announce monetary policy decisions in the Asian session on Friday.
Gold price came within a touching distance of $1,950 ahead of the Fed event on Wednesday but erased all of its daily gains to close in negative territory as the benchmark 10-year US Treasury bond yield climbed above 4.4% on hawkish dot plot. Early Thursday, XAU/USD holds steady at around $1,930.
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 as USD gathers strength
EUR/USD came under renewed bearish pressure and dropped to a fresh three-week low below 1.0800. Following the mixed macroeconomic data releases from the US, the cautious market stance helped the US Dollar find demand and weighed on the pair.
GBP/USD falls to fresh weekly low below 1.2600
GBP/USD turned south in the American session and declined to a weekly low below 1.2600 on Tuesday. Following a quiet European session, the US Dollar started to gather strength and forced GBP/USD to extend the daily slide.
Gold extends slide, more pressure seen under $2,010 Premium
Following Monday's decline, Gold struggled to stage a convincing rebound and retreated below $2,020 in the second half of the day on Tuesday. Although the benchmark 10-year US Treasury bond yield is down more than 1%, renewed USD strength doesn't allow XAU/USD to limit its losses.
Top 5 tokens trending alongside Bitcoin: ORDI, STX, LUNC, PEPE, CFX
Bitcoin price crossed the $41,400 level early on Tuesday. The largest cryptocurrency by market capitalization extended its gains and continued its rally, after yielding 12% weekly gains for holders. The anticipation surrounding Spot Bitcoin ETF approvals is one of the key catalysts fueling the hype among BTC holders.
Nio Stock Earnings: NIO holds onto 3% gain despite Moody cutting China outlook
Nio (NIO) stock's initial 5% gain on Tuesday has transitioned to a 3% gain near $7.55. The Chinese electric vehicle (EV) manufacturer released third-quarter earnings that showed sales of higher margin SUVs surged 258% from the most recent quarter and 64% from a year ago.