Will the BoJ surprise the markets?

The greenback was unable to sustain the optimism seen during after-hours trading in Asia, eventually giving up that lead and ending the day with heavy losses as investors weighed the prospect of further easing by the Fed in the coming months.

Here’s what you need to know on Friday, September 20:

The US Dollar Index (DXY) maintained its post-FOMC bearish mood and revised the 100.50 area. The Fed’s Harker is not scheduled to speak until later this week.

EUR/USD added to Wednesday’s rally and revised the 1.1180 region on increasing US dollar selling pressure. The ECB’s Lagarde is speaking on Friday in conjunction with the release of the consumer confidence flash in the wider euro area. In addition, Germany will release producer prices for August.

GBP/USD breached the 1.3300 barrier for the first time since March 2022 on cautious BoE holdings and further USD selling. Retail sales will be at the center of the debate, backed by public sector net borrowing and GfK’s consumer confidence gauge.

The prevailing appetite for the risk-on galaxy kept the Japanese yen on the back foot and sponsored a move to around 144.00 in USD/JPY. An interesting file from the “Land of the Rising Sun” will feature the BoJ meeting, followed by the inflation rate and weekly foreign bond investment figures.

AUD/USD advanced for the fourth consecutive session and finally managed to break the 0.6800 barrier to print new YTD highs on Thursday. The next relevant release Down Under will be Judo Bank’s preliminary manufacturing and services PMI on September 23rd.

Prices of the US benchmark WTI rose to two-week highs, breaking above $71.00 a barrel, following the broadly bullish tone of the risk complex following the Fed’s interest rate cut.

Gold prices remained near all-time highs around $2,600 per troy ounce, advancing significantly after two consecutive days of losses. Silver prices followed suit and climbed to new two-month highs, breaching the $31.00 per ounce mark.