Market Drivers – US Session 26/09/2022

The US dollar was able to maintain its uptrend momentum and soared at the beginning of the week, pushing major pairs into fresh multi-year lows.

The GBP/USD pair nosedived to record 1.0317 low and now trades around 1.0690, still down on the day. The Bank of England was expected to step in with some sort of intervention, helping the pair to recover, although it did not.

Commodity-linked currencies were also under strong selling pressure. AUD/USD bottomed at 0.6437 while USD/CAD surged to 1.3807. The USD/CHF pair was also up, reaching 0.9965. The USD/JPY finished the day up at 144.55.

Spot gold plunged at trades around $1,625 a troy ounce, while crude oil prices were also sharply down, with WTI now trading at $76.60 a barrel, nearing this year low at $74.25.

Global stocks closed in the red amid panic selling. The FTSE was the exception, helped by the plummeting Sterling. It added measly 2 points.

Economic Data

The Dallas Fed manufacturing index for September 2022 fell to -17.2 versus the prior reading of vs -12.9. Order rate has decreased over the past month. We are only working four days on some of our equipment. Although new orders did surge, there are still several uncertainties and key issues that give us pause on overall business conditions.

A scarce macroeconomic calendar worsened risk-related trading as worldwide central bankers insisted on battling inflation at any cost.

Other Developments

Britain seems to be replacing Italy as Europe’s problem economy though Italy’s problem is not over at all. A fairly quiet start to the week in terms of economic data, Italy’s election brought a resounding win for the right-wing coalition of Brothers of Italy, League and Forza Italy gaining about 44% of the vote, enough for a majority in both chambers of parliament.


BoE’s Andrew Bailey repeated they would not hesitate to alter interest rates as necessary to return inflation to the 2% target sustainably in the medium term, adding they are “closely monitoring” financial markets developments. He also added that the latest developments would be fully assessed at their next scheduled meeting.

EUR/USD trades near a fresh two-decade low of 0.9549 as the EU sees no light at the end of the tunnel. ECB’s Christine Lagarde offered a speech and said that they may need to take additional measures to deal with inflation.


US Durable Goods Orders and CB Consumer Confidence are expected to be released on Tuesday.

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