US Inflation and Size of Fed Rate Cut

The greenback added to the ongoing uptrend, although it appears to have exhausted some upside momentum on Tuesday amid a generally cautious stance ahead of the release of key US CPI readings on Wednesday.

Here’s what you need to know on Wednesday, September 11:

The US dollar index (DXY) did well to keep trading at the upper end of the range near 101.70 ahead of Wednesday’s key data release. The release of the CPI-tracked inflation rate will be the key event on September 11, followed by the weekly MBA mortgage applications and the weekly EIA crude oil inventories report.

EUR/USD could not help but pull back for the third day in a row, approaching the key support area near 1.1000. The next risk event in the Eurozone will be the ECB’s interest rate decision on September 12.

GBP/USD alternated between gains and losses in a tight range against the backdrop of the general cautious tone in the currency universe. On September 11, the UK file will present figures on GDP, trade balance results, construction output, industrial and manufacturing output and the NIESR monthly GDP monitor.

USD/JPY resumed its downtrend and broke below the 143.00 support, turning its attention to recent lows in the sub-142.00 region. The BoJ’s Nakagawa is due to speak on September 11.

AUD/USD retreated for the third day in a row, although it seems to have encountered some decent contention in the 0.6650-0.6640 band for now. Consumer inflation expectations and RBA hunter speech expected on 11 September.

Lingering demand concerns and a discouraging OPEC report sent WTI prices near the $65.00 per barrel mark for the first time since early May 2023.

Gold prices contributed to Monday’s gains amid marginal gains in the greenback and lower U.S. yields ahead of the U.S. CPI release on Wednesday. Silver prices saw modest losses around the $28.30 area following an earlier rally to two-day highs.