Market Update: Dollar Weakens as Fed Rate Cut Speculation Grows
As the selling pressure on the Greenback continues, market participants are increasingly anticipating a potential surprise rate cut by the Fed. Here’s a breakdown of the latest market movements and upcoming data releases:
US Dollar Index (DXY) Decline
- The DXY has dropped for the third consecutive session, falling below the 101.00 support level.
- Lower yields across the board have contributed to the weakness in the US Dollar.
Currency Pair Movements
- EUR/USD surged past the 1.1100 barrier to reach new multi-day highs.
- GBP/USD resumed its uptrend, surpassing the 1.3200 level.
- USD/JPY dropped to new lows near 139.60.
- AUD/USD climbed above 0.6700 and hit fresh two-week highs.
Upcoming Economic Data Releases
- September 17: Retail Sales, Industrial and Manufacturing Production, Business Inventories, NAHB Housing Market Index, and API’s report on US crude oil inventories.
- September 17: Economic Sentiment data from the ZEW institute in Germany and the broader Euroland.
- September 18: UK Inflation Rate release.
- September 17: Tertiary Industry Index in Japan.
- September 18: Westpac Leading Index in Australia.
Commodity Prices
- WTI prices crossed the $70.00 per barrel mark, rising for the fourth consecutive day.
- Gold prices hit a record high, nearing the $2,600 mark amid Dollar weakness and rate cut speculation.
- Silver prices remained near $31.00 per ounce.
Overall, the market is closely watching for any potential policy moves by the Fed and economic data releases to gauge the impact on currency pairs and commodity prices.