Forex Today: US Dollar consolidates weekly gains ahead of mid-tier data
Here is what you need to know on Friday, September 25:
On Friday, September 25, the US Dollar (USD) Index continued its weekly rally, reaching its highest level since late July near 101.40 before consolidating and slipping to around 101.00. Economic data due this week includes the Durable Goods Orders for August and a revised University of Michigan (UoM) report on September Consumer Sentiment.
The US Dollar showed the strongest performance against the Australian Dollar this week. Hawkish remarks from Federal Reserve officials contributed to the Dollar's strength, with the benchmark 10-year US Treasury bond yield surpassing 5.2% for the first time since June 2007. Philadelphia Fed President Anna Paulson's speech conveyed a hawkish tone, implying potential further interest rate hikes due to stubbornly high inflation and resilient growth.
FX strategists at OCBC believe that supportive economic data, energy prices, and inflation concerns continue to boost the Dollar's value. Labor market dynamics may also support this trend, with decreasing initial jobless claims raising the risk of an unexpected increase in employment. The Euro (EUR) against the US Dollar (EUR/USD) remained relatively stable around 1.1400, while the British Pound (GBP) held steady above 1.3200 after a four-day decline of over 1%.
The Japanese Yen (JPY) faced bearish pressure and hovered near 158.00. Gold prices retreated in the European morning, slipping more than 2% to $4,275.03 per ounce, marking a weekly decline. UOB Group analysts noted that this decline may indicate a rare decoupling of gold from traditional risk-off assets amid high volatility and geopolitical uncertainties.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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