Will the BoJ surprise markets?

The Greenback could not sustain the optimism seen during the Asian trading hours, eventually surrendering that advance and ending the day with marked losses as investors assessed the prospects of further easing by the Fed in the months to come.

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

The US Dollar Index (DXY) maintained its bearish mood post-FOMC and revisited the 100.50 zone. The Fed’s Harker is only due to speak at the end of the week.

EUR/USD added to Wednesday’s uptick and revisited the 1.1180 region following increasing selling pressure in the US Dollar. The ECB’s Lagarde speaks on Friday, along with the release of the flash Consumer Confidence in the broader Euroland. In addition, Germany will release August’s Producer Prices.

GBP/USD surpassed the 1.3300 barrier for the first time since March 2022 on the back of the cautious hold by the BoE and further USD-selling. Retail Sales will be at the centre of the debate, seconded by Public Sector Net Borrowing and the GfK’s Consumer Confidence gauge.

The prevailing appetite for the risk-linked galaxy kept the Japanese Yen on the back foot and sponsored a move to around 144.00 in USD/JPY. An interesting docket in “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 session in a row and finally managed to trespass the 0.6800 barrier to print new YTD highs on Thursday. The next relevant release Down Under will be the preliminary Judo Bank Manufacturing and Services PMIs on September 23.

Prices of the American reference WTI rose to two-week tops past the $71.00 mark per barrel following the widespread upbeat tone in the risk complex post-Fed’s rate cut.

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