Holidays in Japan and China have not dampened the trading mood so far this week. The dollar has weakened heading into European trading, with USD/JPY especially testing the 140.00 level. The low was 139.94, the lowest since July last year. There is certainly pressure.
Additionally, the US Dollar has also seen a slight overall decline this week with the Fed in the spotlight. Market participants are now beginning to argue for a 50bps rate cut, with the probability of this now seen as around 59%. Will the Fed back down or will it buckle against market expectations? want?
Meanwhile, gold continues to climb toward new record highs, currently up 0.4% at $2,586. The train keeps rolling, especially with yields kept in check. But in trading this week, it’s all down to the Fed, once again.
Looking ahead to the coming sessions, there won’t be many distractions. This week will be focused on major central bank decisions, so everything leading up to that will be mainly a matter of flow positioning. With a week like this, there won’t be much information on the data front, but at least we have US retail sales tomorrow. But nothing major today.
0630 GMT – Swiss producer and import prices in August
0800 GMT – Italian August CPI final figures
0800 GMT – SNB total current account balance as of September 13
0900 GMT – Eurozone July trade balance data
That’s all for the next few sessions. I wish you all the best in the coming days and good luck with your trading. Take care.
https://www.forexlive.com/news/just-a-couple-of-light-releases-on-the-agenda-in-the-session-ahead-20240916/
