FX Today: US, Tokyo inflation in the limelight

The US Dollar (USD) picked up strong pace on Thursday, advancing to three-week highs as investors assessed firmer US data releases while Fed officials gave mixed remarks regarding the Fed’s rate path.

Here’s what to watch on Friday, September 26:

The US Dollar Index (DXY) added to Wednesday’s gains and rose to three-week highs past the 98.00 mark, helped by solid results from the US docket and higher US yields across the curve. The PCE will take centre stage, seconded by Personal Income, Personal Spending, and the final U-Mich Consumer Sentiment gauge. In addition, the Fed’s Hammack, Barkin, Bowman and Musalem are due to speak.

EUR/USD weakened to three-week lows, retreating to the 1.1650 region once gin and adding to Wednesday’s decline. The ECB will publish its Consumer Inflation Expectations, while the ECB’s Lagarde is also due to speak.

GBP/USD sank to seven-week troughs, revisiting the 1.3320 zone in response to the sharp uptick in the Greenback. The BoE’s Consumer Credit figures, Mortgage Approvals, and the M4 Money Supply are next on tap across the Channel on September 29.

USD/JPY built on Wednesday’s advance and climbed to eight-week highs near the key 150.00 hurdle. The release of the Tokyo Inflation Rate will gather all the attention on the Japanese calendar, followed by weekly Foreign Bond Investment readings and the speech by the BoJ’s Noguchi.

AUD/USD retreated for the third consecutive day, this time retesting the 0.6540 zone, or multi-week lows. Building Permits, Housing Credit, and Private House Approvals are next in Oz on September 30.

Prices of the American WTI rose for the fourth day in a row, briefly trespassing the $65.00 mark per barrel following solid prints from the US docket, offsetting potential oversupply concerns.

Gold prices struggled to extend their daily recovery past the $3,760 mark per troy ounce, ending the day virtually unchanged around $3,740. Silver prices left behind two daily retracements in a row and rallied past the $45.00 mark per ounce for the first time since May 2011.