Will the U.S. dollar’s rally continue ahead of next week’s FOMC meeting?

Will the U.S. dollar’s rally continue ahead of next week’s FOMC meeting?

17.09.2021

Although U.S. stock prices rose toward the close yesterday, they failed to surpass the previous day’s closing level, resulting in a market environment 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 hovering around 1.34%. WTI crude oil fell back to the $72.29 range, while gold also declined 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 pair is falling as it is clearly capped by the 20-day moving average, so this is a phase where we need to watch carefully to see if yesterday’s decline will continue. The AUD/JPY pair fell slightly yesterday but has recovered during today’s Asian session and is currently trading around 80.06.

Today’s key economic indicators include UK retail sales at 3:00 PM, the Eurozone Consumer Price Index at 6:00 PM, and the University of Michigan Consumer Sentiment Index at 11:00 PM. With the US dollar regaining strength recently and the upcoming FOMC meeting next week, I intend to closely monitor how currency strength and weakness across various countries evolve over the weekend.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed