The US dollar has been under pressure in recent days, leading to its second consecutive weekly decline. This comes as investors expect the Federal Reserve to cut interest rates on September 18, with most predicting a 25 basis point reduction.
The US Dollar Index (DXY) continued its downward trend, testing the sub-101.00 region on Friday. The upcoming week is packed with economic data, including the New York Empire State Manufacturing Index on September 16 and key reports on September 17 and 18. The Federal Reserve’s interest rate decision on September 18 will be a major event to watch.
In the forex market, EUR/USD hit weekly highs above 1.1100 but ended the week slightly lower. The eurozone will see important data releases throughout the week, including the Balance of Trade, Labour Cost Index, and Wage Growth.
GBP/USD had a positive week, reaching the 1.3160 area before retracing slightly. The UK will release its Inflation Rate on September 18, followed by a Bank of England meeting on September 19.
USD/JPY dropped to new lows due to a weaker US dollar and declining yields. The Japanese yen will be influenced by economic data releases and the Bank of Japan meeting on September 20.
AUD/USD saw gains after two weeks of losses, with upcoming data releases including the Westpac Leading Index and the labour market report.
Anticipating Economic Perspectives: Voices on the Horizon
- Fed’s Logan to speak on September 17.
- RBA’s Jones, BoC’s Rogers, and ECB’s Nagel to speak on September 18.
- ECB’s Nagel and BoC’s Vincent to speak on September 19.
- Fed’s Harker, BoE’s Mann, Bo’s Macklem, and ECB’s Lagarde to speak on September 20.
Central Banks: Upcoming Meetings to Shape Monetary Policies
- Federal Reserve and Bank Indonesia to decide on rates on September 18.
- Norges Bank, SARB, BoE, and CBRT to meet on September 19.
- BoJ to meet on September 20.