Here’s what you should know for Monday, September 15th:
This week kicks off with major currency pair trading as investors brace for significant macroeconomic data and central bank meetings. The European Economic Calendar is set to release trade balance figures for July, while the Federal Reserve Bank of New York will unveil Empire State Manufacturing Index data later in the month.
US Dollar Prices over the past 7 days
The following table reflects changes in the US dollar (USD) against various major currencies over the last week. Notably, the US dollar was weakest against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.21% | -0.56% | -0.53% | 0.00% | -1.64% | -1.11% | -0.25% | |
| EUR | 0.21% | -0.36% | -0.24% | 0.20% | -1.42% | -0.86% | -0.04% | |
| GBP | 0.56% | 0.36% | 0.02% | 0.56% | -1.07% | -0.51% | 0.31% | |
| JPY | 0.53% | 0.24% | -0.02% | 0.46% | -1.14% | -0.73% | 0.30% | |
| CAD | -0.00% | -0.20% | -0.56% | -0.46% | -1.54% | -1.06% | -0.28% | |
| AUD | 1.64% | 1.42% | 1.07% | 1.14% | 1.54% | 0.57% | 1.39% | |
| NZD | 1.11% | 0.86% | 0.51% | 0.73% | 1.06% | -0.57% | 0.82% | |
| CHF | 0.25% | 0.04% | -0.31% | -0.30% | 0.28% | -1.39% | -0.82% |
The heatmap displays the rate of change between major currencies, where the chosen base currency appears in the left column and the currency to be compared is listed on the top row. So if you look at USD and the corresponding box for JPY, the rate indicates how USD compares to JPY.
On another note, Fitch Ratings announced on Friday that it has downgraded France’s credit rating from AA to A+. They expressed a desire for future budget discussions to lead to a less aggressive fiscal consolidation than previously suggested by the outgoing administration. Following a slight increase last week, EUR/USD is expected to stabilize during Monday’s European session above 1.1700. Later in the day, ECB President Christine Lagarde will address attendees at the “Conversations for Tomorrow” event, celebrating 25 years of the Institut Montaigne in Paris.
China’s retail sales data released early Monday indicated a 3.4% year-over-year increase in August. This figure, however, fell short of the anticipated 3.8%, following a 3.7% rise in July. Meanwhile, industrial production showed a 5.2% growth, slightly below the expected 5.8%. In response, AUD/USD remained relatively stable, just above 0.6650.
The US Dollar Index (DXY) has shown little change over the past week, trading within a narrow range slightly above 97.50 on Monday morning in Europe. The Federal Reserve will announce its monetary policy decision on Wednesday alongside an updated economic forecast summary, often referred to as the dot plot.
GBP/USD has also held steady, trading above 1.3550 at the start of the week. The UK’s National Bureau of Statistics is set to release July employment figures and August inflation data on Tuesday and Wednesday, respectively, ahead of the Bank of England’s interest rate decision on Thursday.
As for USD/CAD, it has been trading sideways near 1.3800 after showing no clear trend last week. The Consumer Price Index (CPI) data for August and the Bank of Canada’s policy meeting will be closely watched later this week.
USD/JPY is trading within a tight range around 147.50 at the beginning of European trading hours. The Bank of Japan is expected to announce its policy decision on Friday during the Asian session.
Finally, after reaching new highs in the first half of last week, gold has entered a consolidation phase, moving in a narrow range as we approach the weekend. It remains steady on Monday, hovering just below $3,650.
