Inflation prints in the producer and the consumer side in the US further cemented the case for the first interest rate cut by the Federal Reserve, since December 2024. Consequently, the US Dollar (USD) resumed its downtrend as a busy US economic docket winds down on Friday with the release of the University of Michigan Consumer Sentiment Index.
Here's what to watch on Friday, September 12:
The US Dollar Index (DXY), which tracks the buck’s value against six other currencies, tumbles 0.26% at 97.54. Even though price action suggests that the Dollar seems to have bottomed, downside risks remain as Initial Jobless Claims reinforced the weakness of the labor market ahead of next week’s Federal Open Market Committee meeting.
EUR/USD recovered some ground as the European Central Bank (ECB) held rates unchanged and its President Madame Christine Lagarde said that the disinflationary process is over. The shared currency recovered the 1.1700 amid US Dollar weakness. Regarding interest rates adjustments, the ECB is expected to stand still throughout the end of the year.
GBP/USD reclaimed 1.3500 and looks poised to test 1.3600 as traders await the release of Gross Domestic Product (GDP) figures on Friday, with the month-over-month reading expected at 0%, and on a yearly basis the economy is foreseen to grow by 1.1% up from 0.2% in June.
USD/JPY turned negative as US data prompted a sell-off of the Dollar, with traders poised to test the 147.00 mark. Japanese Industrial Production and Capacity Utilization figures for July, could dictate the strength of the manufacturing sector, amid the ongoing political issues after PM Ishiba resignation.
AUD/USD soared sharply to fresh yearly highs of 0.6664, poised to test 0.6700 in the near term. The economic docket in Australia is absent, also on China, but market sentiment could drive flows towards the Aussie Dollar.
Gold prices are battling to find its foot, even though the Greenback is softer during the day. The XAU/USD is set to remain range trading within the $3,630-$3,650 range as market participants fully digest the last tranche of economic data in the US.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.20% | -0.53% | -0.75% | 0.05% | -1.64% | -1.39% | -0.33% | |
| EUR | 0.20% | -0.35% | -0.48% | 0.24% | -1.43% | -1.13% | -0.13% | |
| GBP | 0.53% | 0.35% | -0.22% | 0.59% | -1.08% | -0.79% | 0.22% | |
| JPY | 0.75% | 0.48% | 0.22% | 0.74% | -0.92% | -0.77% | 0.44% | |
| CAD | -0.05% | -0.24% | -0.59% | -0.74% | -1.58% | -1.37% | -0.38% | |
| AUD | 1.64% | 1.43% | 1.08% | 0.92% | 1.58% | 0.30% | 1.32% | |
| NZD | 1.39% | 1.13% | 0.79% | 0.77% | 1.37% | -0.30% | 1.01% | |
| CHF | 0.33% | 0.13% | -0.22% | -0.44% | 0.38% | -1.32% | -1.01% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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