The US Dollar Index ended the week near 99.00, steady after regaining ground lost following Thursday’s inflation release. Focus now turns to Wednesday’s Federal Reserve decision, where markets lean towards a 25bp rise that would take the target range to 4.00% from 3.75%, after an August Consumer Price Index reading in which core inflation ran above forecasts. Canada publishes August inflation on Monday alongside Chinese activity data, while the UK labour report and Germany’s ZEW survey follow on Tuesday; Wednesday also brings UK CPI and US Retail Sales before the Fed’s projections and press conference. The Bank of England is due Thursday and the Bank of Japan on Friday, while ECB officials including Christine Lagarde are scheduled to speak; New Zealand prints second-quarter GDP and RBA Governor Michele Bullock speaks on Thursday. Geopolitical tension around Iran and the Strait of Hormuz remains an overhang for energy markets.
Major Currency Pair Movements
EUR/USD finished around 1.1590, with Eurozone data limited to final inflation, industrial production and ZEW. GBP/USD held near 1.3525, with UK unemployment seen at 5.0% and core CPI at 2.7%, ahead of a BoE hold expected at 3.75% with around three members seen dissenting. USD/JPY was near 153.70 as markets look for a BoJ move to 1.25%, while AUD/USD hovered around 0.7170. WTI traded near $100 after falling more than 3%, and gold was near $4,350.
