A stalemate is likely ahead of the FOMC meeting

The greenback came under renewed downward pressure following further cooling in the US labor market, as well as further signs that disinflationary pressures were far from abated in August, this time via producer prices. These readings appear to have cemented investors’ outlook for a Fed rate cut at next week’s meeting.

Here’s what you need to know on Friday, September 13:

The US dollar index ( DXY ) snapped a four-day positive streak amid re-uptrend downtrend in response to weak US data. Import and export prices are due on September 13, supported by Michigan’s preliminary consumer sentiment indicator.

EUR/USD finally saw some signs of life and regained its composure after four consecutive days of losses. Industrial production in the wider euro bloc will be released on September 13 ahead of the Eurogroup meeting and the speech by C. Lagarde from the ECB.

GBP/USD regained its smile and breached the 1.3100 barrier following further selling pressure from the greenback. The next risk event on the UK docket will be the release of the inflation rate on 18 September.

USD/JPY extended its weekly range lower and revisited the area below the 142.00 support amid higher yields and the greenback’s daily pullback. Final industrial production prints will take place on September 11, along with capacity utilization.

AUD/USD advanced to weekly highs and left behind the 0.6700 hurdle on strong buying interest in risk assets. The Westpac Leading Index is due on September 18.

WTI prices contributed to Wednesday’s recovery and neared the key $70.00 per barrel threshold due to supply concerns ahead of Hurricane Francine’s landfall.

Gold prices hit an all-time high around $2,555 per troy ounce in response to a weaker US dollar and expectations of Fed easing. Silver hit two-week highs, trading within shouting distance of the key $30.00 an ounce mark.