Forex Today: Will the BoJ surprise markets?

Pablo Piovano FXStreet

The Greenback could not sustain the optimism seen during the Asian trading hours, eventually surrendering that advance and ending the day with marked losses as investors assessed the prospects of further easing by the Fed in the months to come.

Here is what you need to know on Friday, September 20:

The US Dollar Index (DXY) maintained its bearish mood post-FOMC and revisited the 100.50 zone. The Fed’s Harker is only due to speak at the end of the week.

EUR/USD added to Wednesday’s uptick and revisited the 1.1180 region following increasing selling pressure in the US Dollar. The ECB’s Lagarde speaks on Friday, along with the release of the flash Consumer Confidence in the broader Euroland. In addition, Germany will release August’s Producer Prices.

GBP/USD surpassed the 1.3300 barrier for the first time since March 2022 on the back of the cautious hold by the BoE and further USD-selling. Retail Sales will be at the centre of the debate, seconded by Public Sector Net Borrowing and the GfK’s Consumer Confidence gauge.

The prevailing appetite for the risk-linked galaxy kept the Japanese Yen on the back foot and sponsored a move to around 144.00 in USD/JPY. An interesting docket in “The Land of the Rising Sun” will feature the BoJ meeting, followed by the Inflation Rate and weekly Foreign Bond Investment figures.

AUD/USD advanced for the fourth session in a row and finally managed to trespass the 0.6800 barrier to print new YTD highs on Thursday. The next relevant release Down Under will be the preliminary Judo Bank Manufacturing and Services PMIs on September 23.

Prices of the American reference WTI rose to two-week tops past the $71.00 mark per barrel following the widespread upbeat tone in the risk complex post-Fed’s rate cut.

Gold prices remained close to the all-time highs around the $2,600 mark per ounce troy, advancing markedly after two consecutive days of losses. Silver prices followed suit and climbed to new two-month highs past the $31.00 mark per ounce.

Author

Pablo Piovano

FXStreet

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

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.