What to Know for Wednesday, September 24th
This mid-week, major currency pairs seem to be lacking clear direction as traders await a new catalyst. Investors are particularly focused on the business sentiment data emerging from Germany during the European session. Later on, the U.S. Economic Calendar will release data on new home sales for August.
Today’s US Dollar Price
Below is an overview of the US dollar’s rate of change against other currencies. Notably, the US dollar is currently the strongest against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.23% | 0.23% | 0.31% | 0.12% | -0.35% | 0.13% | 0.17% | |
| EUR | -0.23% | -0.01% | 0.09% | -0.11% | -0.58% | -0.11% | -0.06% | |
| GBP | -0.23% | 0.00% | 0.04% | -0.11% | -0.51% | -0.11% | -0.10% | |
| JPY | -0.31% | -0.09% | -0.04% | -0.20% | -0.64% | -0.26% | -0.16% | |
| CAD | -0.12% | 0.11% | 0.11% | 0.20% | -0.43% | -0.01% | 0.06% | |
| AUD | 0.35% | 0.58% | 0.51% | 0.64% | 0.43% | 0.47% | 0.52% | |
| NZD | -0.13% | 0.11% | 0.11% | 0.26% | 0.00% | -0.47% | 0.07% | |
| CHF | -0.17% | 0.06% | 0.10% | 0.16% | -0.06% | -0.52% | -0.07% |
This heatmap illustrates the rate of change among major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For instance, if you choose the US dollar from the left and look to the Japanese yen across the top, the cell indicates the rate of change for USD/JPY.
On Tuesday, Federal Reserve Chairman Jerome Powell spoke at the Greater Providence Chamber of Commerce’s 2025 Economic Outlook Lunch. He emphasized the importance of keeping one-time price increases from spiraling into prolonged inflation. Powell also noted that the labor market feels somewhat “soft” and not particularly dynamic. Consequently, market reactions remained subdued, as he didn’t introduce any new insights compared to his comments from last week.
The US Dollar (USD) index dipped slightly before bouncing back to 97.50 early Wednesday. Meanwhile, US stock index futures climbed about 0.2% on Wednesday morning, following a negative close on Wall Street the previous day.
Gold has reached a record high of over $3,790, but it saw a slight pullback, which reduced some of its daily gains. As of early Wednesday, XAU/USD appears to be stabilizing around $3,770. Ukrainian President Voldymi Zelensky expressed optimism about improving relations with the U.S., based on comments from Trump, suggesting Ukraine might fully regain control over territory occupied by Russia.
The EUR/USD pair is facing slight bearish pressure after a small gain on Tuesday, currently trading below 1.1800.
On the Australian front, data revealed that Consumer Price Index (CPI) rose by 3% year-on-year in August, exceeding market expectations of 2.9%, following a 2.8% rise in July. The AUD/USD gained momentum on Wednesday, trading positively above 0.6600.
Canadian Prime Minister Mark Carney remarked on the escalating impact of Trump’s trade tariffs, acknowledging that the trade debate between the US and Canada remains active. Following two consecutive days of profit, USD/CAD is trading higher, reaching its peak in ten days at almost 1.3850.
As for the GBP/USD pair, it’s facing challenges in maintaining its gains, struggling to stay above the recovery mark near 1.3500 on Wednesday morning.
Japanese data indicated a drop in the Jibun Bank Manufacturing Purchasing Managers’ Index (PMI) to 48.4 in early September, down from 49.7 in August, while the service PMI remained steady at 53. As a result, USD/JPY is up in the European session, trading just above 148.00.
FAD FAQ
U.S. monetary policy is shaped by the Federal Reserve System, which has two primary goals: to achieve price stability and promote full employment. The main approach for hitting these objectives is by adjusting interest rates. Rapid price increases above the Fed’s target of 2% typically lead to higher interest rates, raising overall borrowing costs and bolstering the USD’s attractiveness. Conversely, if inflation dips below 2% or unemployment rises, the Fed may lower rates to spur borrowing.
The Federal Reserve meets eight times a year to evaluate economic conditions and decide on monetary policies. The Federal Open Market Committee (FOMC) consists of 12 federal officials, including seven members of the Governor’s Committee, the chair of the Federal Reserve Bank of New York, and four Regional Reserve Bank presidents serving one-year terms on a rotating basis.
In certain extreme situations, the Federal Reserve may resort to a policy known as Quantitative Easing (QE). This process is intended to boost credit flow in the financial system when it’s stagnated. QE, considered a non-standard measure, is often applied during crises or periods of low inflation. It involves the Fed generating more dollars to purchase high-quality bonds from banks, which typically results in a weaker USD.
Quantitative Tightening (QT) reverses QE, wherein the Fed ceases bond purchases and does not reinvest the principal from maturing bonds into new bonds. This approach usually supports the dollar’s value.
