Will the U.S. dollar's rally continue ahead of next week's FOMC meeting?
17.09.2021
- UK Retail Sales
- University of Michigan Consumer Sentiment Index
Yesterday, although stock prices in the U.S. market rose toward the close, they failed to surpass the previous day’s closing level, resulting in a market characterized by falling stock prices, rising interest rates, and lower crude oil prices. The yield on the 10-year U.S. Treasury note rose sharply and is now around 1.34%.WTI crude oil fell back to the $72.29 range, while gold also retreated in tandem with the rise in U.S. Treasury yields, settling in the $1,756 range.
The Dollar Index has risen slightly to 92.9, indicating a strong advance by the U.S. dollar. The Australian dollar, which had been rebounding recently, fell under pressure from the U.S. dollar’s strength, dropping from 0.734 to 0.727.On the daily chart, the AUD is falling as it is being neatly capped by the 20-day moving average (20MA), so this is a phase where we need to carefully monitor whether yesterday’s decline will continue. Although the AUD/JPY fell slightly yesterday, it has recovered during today’s Asian trading session and is currently trading around 80.06.
Today’s key economic indicators include UK retail sales at 3:00 p.m., the Eurozone Consumer Price Index at 6:00 p.m., and the University of Michigan Consumer Sentiment Index at 11:00 p.m.With the U.S. dollar once again showing strength, and with next week’s FOMC meeting on the horizon, I intend to closely monitor how currency strength and weakness across various countries will play out over the weekend.
Author: Keisuke Sakurai
