Tension is mounting ahead of the Federal Reserve’s decision with oil, gold, and the yen are somewhat stronger. The yen touched a two-week high of 105.26 per dollar earlier. US retail sales are also set to have a significant impact on the dollar.
USD/JPY is currently trading closer to 105.35, erasing some of its earlier losses but still losing its inverse correlation with stocks. EUR/USD is trading around 1.1850, consolidating its losses recorded on in the session before. GBP/USD holds steady around 1.2900 after the UK annualized CPI beat estimates with 0.2% in August.
Gold has been stabilizing on higher ground, rising with equities. It is also waiting for the Fed for the next move. Oil prices have been on the rise as hurricane Sally is advancing in the Gulf of Mexico and has already triggered the shuttering of some installations. Private inventory data has shown a drawdown, also supporting crude prices.
The Federal Reserve is expected to leave its policies unchanged in its last meeting before the elections. The Fed publishes new forecasts for growth, inflation, employment, and rates. These projections and Federal Reserve Chairman Jerome Powell’s tone are set to rock markets.
Ahead of the Fed, the US publishes retail sales figures for August – the first post-pandemic month where government support was withdrawn. Nevertheless, another month of growth is on the cards.
Yen climbs to two-week high against the Dollar on Fed anticipation
Published on 2020-09-16 07:26
Markets look to an upbeat start to a Big week
EUR/USD holds higher ground above 1.1650 – US Durable Goods Orders Ahead
Euro holds steady closer to two-months low – German IFO in Focus
US Dollar Over Haven Demand – Eurozone, UK and US PMIs Ahead