USD Weakens Against Major Rivals
On Tuesday, September 17, the US Dollar (USD) continued its weakening trend against major rivals, with the USD Index losing 0.4% on the day. Investors are awaiting US data releases ahead of the all-important Federal Reserve (Fed) monetary policy announcements on Wednesday.
Key Events for the Day:
- Germany’s ZEW Institute will publish September Economic Sentiment data for Germany and the Eurozone.
- US economic docket features August Retail Sales and Industrial Production data.
US Dollar Price Movement Last 7 Days
The table below shows the percentage change of US Dollar (USD) against major currencies in the last 7 days. Notably, the USD was weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.84% | -1.04% | -1.83% | 0.21% | -1.41% | -0.76% | -0.62% |
The heat map visually represents the percentage changes of major currencies against each other, providing insights into relative strengths and weaknesses.
Market Highlights
- The USD Index remains below 101.00, while the 10-year US Treasury bond yield hovers above 3.6%.
- EUR/USD climbed to a 10-day high above 1.1100.
- GBP/USD rose above 1.3200, fluctuating around 1.3210.
- USD/CAD trades below 1.3600, awaiting Canada’s CPI data release.
- AUD/USD gained 0.7% despite China’s disappointing macroeconomic data.
- USD/JPY rebounded from yearly lows, trading near 140.50.
- Gold reached a record-high near $2,590 before retracing slightly.
Central Banks FAQs
Central banks play a crucial role in maintaining price stability in economies. Here are some frequently asked questions about central banks:
- What is the mandate of central banks? Central banks aim to keep inflation close to 2% by adjusting their policy rate.
- How do central banks influence inflation? By changing interest rates through monetary policy, central banks can impact inflation levels.
- Are central banks politically independent? Central banks often operate independently to make monetary policy decisions.
- How do central banks communicate policy decisions? Chairpersons lead meetings to create a consensus on policy adjustments and communicate decisions to the public.