Key Market Updates for Friday, September 20:
The US Dollar Index (DXY) Trends
- The US Dollar Index (DXY) maintained its bearish trend post-FOMC, revisiting the 100.50 zone.
- Fed’s Harker is scheduled to speak at the end of the week, potentially impacting market sentiment.
EUR/USD Movement
EUR/USD saw an uptick, reaching the 1.1180 region amidst increased selling pressure on the US Dollar.
- ECB’s Lagarde is set to speak on Friday, along with the release of the flash Consumer Confidence in the Eurozone.
- Germany will release August’s Producer Prices, influencing market dynamics.
GBP/USD Performance
GBP/USD surpassed the 1.3300 barrier for the first time since March 2022, driven by BoE’s cautious stance and USD-selling.
- Market focus on Retail Sales, Public Sector Net Borrowing, and GfK’s Consumer Confidence gauge.
USD/JPY Outlook
USD/JPY saw movement around 144.00 as risk appetite favored risk-linked currencies, keeping the Japanese Yen under pressure.
- BoJ meeting, Inflation Rate, and Foreign Bond Investment figures in Japan will impact market sentiment.
Latest Developments in AUD/USD
AUD/USD continued its upward trend, breaking the 0.6800 barrier to reach new YTD highs on Thursday.
- Next focus on preliminary Judo Bank Manufacturing and Services PMIs on September 23 in Australia.
Commodity Market Highlights
WTI prices rose to two-week highs above $71.00 per barrel, driven by positive market sentiment post-Fed’s rate cut.
- Gold prices near all-time highs around $2,600 per ounce, while Silver prices climbed to new two-month highs above $31.00 per ounce.
In Summary:
The market saw a mix of trends on Friday, with the US Dollar facing pressure and major currency pairs reacting to central bank policies and economic data releases. Commodity prices also saw significant movements, reflecting global market sentiment and risk appetite.