It may be a holiday in Japan and China today, but that hasn’t dampened the mood at the start of the week so far. The US dollar has been lower as we look ahead to European trading, with USD/JPY in particular testing the 140.00 level. The pair’s previous low was 139.94, its lowest since July last year. The pressure is certainly there.
Additionally, the US dollar is also trading slightly lower across the board as all focus and attention this week shifts towards the Fed. Market players are now starting to push the narrative of a 50bp rate cut, with odds currently at around 59%. Will the Fed give in or resist what the markets want? He wants?
Meanwhile, gold continues to climb to new record highs — now up 0.4% at $2,586. The train keeps on rolling, especially as yields also remain steady. But again, it’s all down to the Fed this week.
Looking ahead to the session ahead, there won’t be much to distract from. It’s all about the major central bank decisions this week. So anything leading up to that will mostly be a matter of where the flows are. Data won’t offer much in a week like this, although we do have US retail sales tomorrow at least. But today, nothing major.
0630 GMT – Swiss Producer and Import Prices for August
0800 GMT – Final CPI figures for August in Italy
0800 GMT – Total deposits at the Swiss National Bank today, September 13
0900 GMT – Eurozone trade balance data for July
That’s all for the upcoming session. I wish you all a great day ahead and good luck with your trading! Stay safe out there.