This is what you need to know to trade today monday september 26:
The DXY dollar index has continued as it left off last week and has reached its highest level since May 2002at 114.52, before retracing part of its daily move in early European morning. Risk Aversion, Fed Comments and Rising US Treasury Yields. influence the impressive performance of the dollar. The Germany IFO sentiment survey It will be the protagonist of the European economic agenda, before the data of the national activity index of the Chicago Fed and the index of manufacturing business of the Dallas Fed in the United States. The President of the European Central Bank (ECB), Christine Lagardeand several FOMC policymakers will also deliver speeches on Monday.
Ahead of the weekend, US PMI figures revealed that service sector business activity rebounded strongly in early September. Additionally, the Composite PMI rose sharply to 49.3 from 44.6 in July and the Manufacturing PMI rose to 51.8 from 51.1 in the same period.
In an interview with CBS on Sunday, the president of the Atlanta Fed, Raphael Bostic, reiterated that inflation is too high and that everything possible must be done to reduce it. Bostic will speak again on Monday, while the president of the Federal Reserve Bank of Cleveland, Loretta Mesterand the president of the Federal Reserve Bank of Dallas, Lorie Logan, they will too. Meanwhile, the 10-year US Treasury bond yield has risen more than 2% on the day to 3.78%.
The pair EUR/USD lost over 300 points last week and has fallen to its lowest level since June 2002, at 0.9570, during the Asian session on Monday. The pair is trading in negative territory near 0.9630.
The GBP/USD has reached a new record low at 1.0355 in the Asian session. The Bank of England’s disappointing 50 basis point hike last week and the UK government’s plan to cut taxes and increase public borrowing triggered a relentless sell off of the pound sterling ahead of the weekend. Although the pair has recovered above 1.0600 in early morning trading in Europe, it is still down more than 2% on the day. Meanwhile, the market speculates on the possibility of the Bank of England holding an emergency meeting and raising its interest rate to limit the depreciation of the pound sterling.
The increase in yields in the US and the general strength of the dollar have allowed the USD/JPY continued to rise towards 144.00 on Monday. Following last week’s intervention in currency markets, “there is no change in our position that we will respond to market movements as necessaryJapanese Finance Minister Shunichi Suzuki reiterated on Monday. Data from Japan has shown that Jibun Bank services PMI rose to 51.9 in early September from 49.5 in August and manufacturing PMI fell to 51 from the 51.5.
The Prayed it has dropped below $1,630, but has managed to erase much of its daily losses. The precious metal appears to remain relatively resilient against the dollar despite rising yields as it manages to capture some of the safe haven flows. At time of writing, XAU/USD remains little changed on the day at $1,639.
The Bitcoin it lost more than 2% over the weekend and broke below $19,000. BTC/USD is now trading slightly lower on the day at $1.8730. The ethereum it remains lower in the early hours of Monday and is down 1% on the day, slightly below $1,300.
Source: Fx Street
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