Dollar Slips and Oil Falls as Markets Reprice Fed and Iran Risks
United States. The US dollar is strengthening against the Japanese yen today while posting moderate losses against the euro and the British pound.
United States. The US dollar is strengthening against the Japanese yen today while posting moderate losses against the euro and the British pound.
EUR/USD. The euro is showing mixed dynamics against the U.S. dollar during the Asian session, consolidating near 1.1730 as market activity remains muted while traders wait for fresh catalysts.
The U.S. dollar is gaining against the Chinese yuan in the USD/CNH pair during the morning session, rebounding after a series of declines over the past two weeks. The pair is testing the 7.1160 level to the upside as investors await new catalysts. Markets continue to analyze U.S. inflation data, trying to forecast how it might influence the Federal Reserve’s decision on September 17.
The U.S. dollar is gaining against the Swiss franc in the USD/CHF pair during the Asian session, once again testing the 0.7965 level for an upward breakout while correcting after a moderate decline the previous day.
The U.S. dollar is rising against the yen and the pound but shows mixed dynamics against the euro.
EUR/USD. The euro is trading flat against the U.S. dollar during the Asian session, holding near 1.1720 and preparing to close the week with modest gains, as traders digest German inflation data. In the broader forex market, EUR/USD remains in focus as investors assess eurozone fundamentals against expectations for a Fed rate cut.
The GBP/USD pair is consolidating around 1.3508 as traders await the UK economic report due tomorrow at 08:00 (GMT+2).
The CAC 40 index is currently trading near 7756.0. With corporate earnings season drawing to a close, fundamental factors and bond market developments are once again the primary drivers of French equities.
WTI crude oil prices are holding above the key 63.00 level, consolidating amid a mix of geopolitical and fundamental drivers.
Gold prices (XAU/USD) are edging lower in early trading, once again testing the 3630.00 level to the downside. Demand for the safe-haven asset is supported by growing expectations that the U.S. Federal Reserve will cut interest rates at its September 17 meeting.
During the Asian session, USD/TRY continues its medium- and long-term bullish trend, testing 41.2740 to the upside as traders await U.S. inflation data at 14:30 (GMT+2).
During the Asian session, USD/JPY is testing the 147.70 level to the upside as traders digest fresh inflation data from Japan. The Producer Price Index (PPI) rose from 2.5% to 2.7% y/y in August, while the monthly reading slipped by 0.2% after a 0.2% gain in July, slightly weaker than forecasts for –0.1%. Sentiment was further supported by the BSI manufacturing index, which rebounded sharply from –4.8 points to 3.8 points in Q3, well above expectations of –3.3 points.
EUR/USD. The European currency is showing mixed dynamics in the EUR/USD pair during the Asian session, consolidating near the 1.1700 mark. Market activity remains subdued as investors refrain from opening new positions ahead of the European Central Bank (ECB) meeting results at 14:15 (GMT+2), as well as the release of U.S. consumer inflation data for August.
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