Forex Today: US inflation and the size of the Fed’s rate cut

Source Fxstreet

The Greenback added to the ongoing uptrend, although it seems to have run out of some upside impetus on Tuesday amidst the broad-based cautious stance ahead of the release of key US CPI readings on Wednesday.

Here is what you need to know on Wednesday, September 11:

The US Dollar Index (DXY) managed well to maintain business in the upper end of the range near 101.70 prior to key data releases on Wednesday. The release of the Inflation Rate tracked by the CPI will be the salient event on September 11, seconded by the weekly MBA Mortgage Applications, and the EIA’s weekly report on crude oil inventories.

EUR/USD could not help retreating for the third consecutive day, approaching the key support area near 1.1000. The next risk event in the euro area will be the ECB’s interest rate decision on September 12.

GBP/USD alternated gains with losses within a tight range against the backdrop of the generalized prudent tone in the FX universe. On September 11, the UK docket will feature GDP figures, Balance of Trade results, Construction Output, Industrial and Manufacturing Production, and the NIESR Monthly GDP Tracker.

USD/JPY resumed its downtrend and broke below the 143.00 support, shifting its attention to recent lows in the sub-142.00 region. The BoJ’s Nakagawa is due to speak on September 11.

AUD/USD retreated for the third consecutive day, although it seems to have met some decent contention in the 0.6650-0.6640 band for the time being. Consumer Inflation Expectations and the speech by the RBA’s Hunter are expected on September 11.

Persistent demand concerns and a disheartening OPEC report sent WTI prices to the vicinity of the $65.00 mark per barrel for the first time since early May 2023.

Prices of Gold added to Monday’s uptick amidst marginal gains in the greenback and declining US yields prior to the release of the US CPI on Wednesday. Silver prices posted humble losses around the $28.30 zone following an earlier uptick to two-day highs.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Crude Oil Price Forecast: Brent Nears $110 Amid Saudi Pipeline Outage, How Much Further Can Oil Rise?Supply risks in the Middle East continue to heat up, with international oil prices fluctuating at high levels.During Tuesday's Asian trading session, Brent crude futures (UKOIL-F) rose to
Author  TradingKey
11 hours ago
Supply risks in the Middle East continue to heat up, with international oil prices fluctuating at high levels.During Tuesday's Asian trading session, Brent crude futures (UKOIL-F) rose to
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
11 hours ago
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
placeholder
Gold falls below $4,300 as higher US yields bolster Fed rate hike betsGold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
Author  FXStreet
18 hours ago
Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
placeholder
Silver Price Forecast: XAG/USD falls to near $63.50 amid Fed hike bets, higher oil pricesSilver price (XAG/USD) loses its gains from the previous day, trading around $63.50 per troy ounce during Asian hours on Monday. Non-yielding Silver is currently facing significant headwinds driven by rising Federal Reserve (Fed) rate-hike expectations for the upcoming September decision.
Author  FXStreet
Yesterday 10: 37
Silver price (XAG/USD) loses its gains from the previous day, trading around $63.50 per troy ounce during Asian hours on Monday. Non-yielding Silver is currently facing significant headwinds driven by rising Federal Reserve (Fed) rate-hike expectations for the upcoming September decision.
placeholder
Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
Author  Suzie
Yesterday 07: 49
A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
goTop
quote