Market Drivers; US Session, September 19

Following the FOMC, the US Dollar Index (DXY) returned to the 100.50 zone while retaining its gloomy outlook. Harker of the Fed isn’t scheduled to talk until the end of the week.

As selling pressure on the US dollar increased, the EUR/USD strengthened its gain from Wednesday and returned to the 1.1180 area. On Friday, the flash Consumer Confidence report for the entire Euroland will be released concurrently with a speech by Christine Lagarde of the ECB. Germany will also make available the Producer Prices for August.

GBP/USD surpassed the 1.3300 barrier for the first time since March 2022 on the back of the cautious hold by the BoE and further USD-selling. Retail Sales will be at the centre of the debate, seconded by Public Sector Net Borrowing and the GfK’s Consumer Confidence gauge.

The general desire for riskier assets kept the Japanese Yen weak and helped it rise to about 144.00 in the USD/JPY exchange rate. The BoJ meeting, the inflation rate, and the weekly data on foreign bond investments make up an intriguing agenda in “The Land of the Rising Sun.”

For the fourth straight session, the AUD/USD pair saw gains and on Thursday, it finally broke through the 0.6800 barrier to record fresh YTD highs. On September 23, the preliminary Judo Bank Manufacturing and Services PMIs will be released, which is the next significant release in Australia.

Gold prices remained close to the all-time highs around the $2,600 mark per ounce troy, advancing markedly after two consecutive days of losses. Silver prices followed suit and climbed to new two-month highs past the $31.00 mark per ounce.

Prices of the WTI crude oil rose to two-week tops past the $71.00 mark per barrel following the widespread upbeat tone in the risk complex post-Fed’s rate cut.

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