Attention turns to Powell and pre-PCE data

The greenback bounced back strongly after flirting with 14-month lows, prompting a fairly significant reaction in the risk complex ahead of the release of key data and Chairman Powell’s speech.

Here’s what you need to know on Thursday, September 26:

The US Dollar Index (DXY) rallied sharply after bottoming out at new 2024 lows around 100.20. Final figures for the second-quarter GDP growth rate are due, supported by the usual weekly initial jobless claims, durable goods orders and pending home sales. In addition, Kugler, Barr, Kashkari, Collins, Williams and Fed chief Powell are scheduled to speak.

EUR/USD failed to advance further north of the 1.1200 barrier and eventually succumbed to the strong reversal in the US dollar. Germany’s GfK consumer confidence is due along with the ECB’s M3 money supply. In addition, Elderson, Buch, Schnabel, McCaul and Lagarde from the ECB will also speak.

GBP/USD rose past 1.3400, although the move failed to consolidate and the pair corrected significantly lower in line with the dollar’s recovery. Car Production will be the only release on the UK calendar.

The strong recovery in the US dollar and US yields in general motivated USD/JPY to snap back two daily pullbacks in a row and retest the upper 144.00 level. The BoJ will publish its minutes, while weekly data on foreign bond investment is also expected.

After briefly breaching the 0.6900 barrier, AUD/USD started in a deep decline following the greenback’s strong rebound. The RBA will publish its Financial Stability Review (FSR).

WTI prices came under heavy pressure and fell to fresh four-day lows, south of the $70.00 per barrel mark.

Gold prices hit an all-time high around $2,670 a troy ounce amid firm speculation about further Fed rate cuts in the next few months. Silver retested the area of ​​recent highs, breaking above $32.00 an ounce, although they later succumbed to the general bidding trend of the US dollar.