Market Update - 26 September 2023

USD/CHF extends the gains to a five-month high amid market caution ahead of US data. US bond yields are improved due to the Fed’s hawkish stance, strengthening the US Dollar (USD). SNB’s surprising decision to halt the rate-hiking cycle weakened the Swiss Franc (CHF). (FXStreet)

The index extends the march north past the 106.00 mark. Higher US yields continue to underpin the rally in the dollar. US housing data, Consumer Confidence, Fed’s Bowman next on tap. The greenback, in terms of the USD Index (DXY), adds to the ongoing rally and surpasses the 106.00 hurdle to print new 2023 peaks on turnaround Tuesday. (FXStreet)

USD/CAD posts modest gains amid the USD demand and a decline in oil prices. The pair holds below the 50- and 100-hour EMAs. Relative Strength Index (RSI) is located in the 40-60 zone, indicating a non-directional movement. The key resistance level for the pair is seen at the 1.3505-1.3515 region; 1.3443 acts as an initial support level. (FXStreet)

EUR/USD reverses toward 1.0600, recovering from intraday losses. ECB President Christine Lagarde has emphasized that interest rates will remain restrictive for as long as necessary. Investors adopt caution ahead of upcoming economic data releases, seeking inflationary pressures in both economies. 10-year US bond yield has risen to 4.56%, boosting the US Dollar (USD). (FXStreet)

GBP/USD loses momentum around 1.2200 amid a rally of the USD. The hawkish comments from the Federal Reserve (Fed) lift the US Dollar against GBP. UK Gross Domestic Product (GDP) Q2, US Core Personal Consumption Expenditure (PCE) Price Index will be the highlight this week. (FXStreet)

USD/JPY trades around an 11-month high on the back of robust growth in US Dollar (USD). Investors are pricing in the Fed’s hawkish stance on interest rates trajectory. 10-year US bond yield has risen to 4.56%, the highest level since October 2007. Japanese Finance Minister Shunichi Suzuki emphasized that the country has to choose between stimulating consumption or promoting wage growth. (FXStreet)

EUR/GBP extends losses following the ECB President Christine Lagarde’s speech at the European Parliament. ECB’s interest rates will remain restrictive for as long as necessary. Investors await the Eurozone’s HICP, seeking insights into the inflationary pressures in the bloc. (FXStreet)

USD/MXN attracts some buyers on Tuesday amid the USD demand. Mexico’s headline inflation came in at 4.64% for the first half of September from 4.64% at the end of August. Minneapolis Federal Reserve Bank President said he sees one more rate hike this year. Market players will closely monitor Banxico interest rate decision, US Core Personal Consumption Expenditure (PCE) Price Index this week. (FXStreet)

AUD/USD continues to find support near 0.6400, though remains confined in a familiar range. The USD stands by the YTD peak amid the Fed's hawkish outlook and caps gains for the pair. Worries about a property crisis in China also hold back the Aussie bulls from placing fresh bets. (FXStreet)

USD/INR scales higher for the second straight day and touches a multi-day top on Tuesday. The technical setup warrants some caution for bulls and before positioning for further gains. Any corrective decline towards the 83.00 mark could now be seen as a buying opportunity. (FXStreet)

Crude oil prices recover some of the intraday losses after reaching a two-week lowest level. Investors expect that improved oil prices will drive an increase in US crude oil production despite the reduction in rig count. US bond yields are improved on the Fed’s hawkish stance, strengthening the US Dollar (USD). (FXStreet)

Prices of natural gas added to Friday’s uptick at the beginning of the week against the backdrop of declining open interest and volume. That said, further upside now appears unlikely, giving way to further range bound trade in the very near term and with initial contention around the $2.60 region per MMBtu. (FXStreet)

Gold price drops to over a one-week low and seems vulnerable to extending its descending trend. The Fed's hawkish outlook pushes the US bond yields higher and exerts pressure on Gold price. The US Dollar sits near the YTD peak and is seen as another factor undermining the XAU/USD. (FXStreet)

Source: FXStreet

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