Forex Today: Fedspeak, Claims and the ISM data steal the show
The US Dollar (USD) has traded with marginal gains, coming under pressure following daily tops near 101.50 as investors have evaluated the softer-than-expected PCE data in August while trimming some bets on extra tightening by the Federal Reserve in the following months.
In the latest forex market movement, the US Dollar (USD) has seen modest gains, experiencing some pressure as it approached the 101.50 mark due to softer-than-anticipated PCE data and expectations of limited additional tightening from the Federal Reserve. The US Dollar Index (DXY) has returned to the 101.50 range, further fueling a weekly recovery driven by rising US Treasury yields and a slight decline in optimism surrounding extra Fed tightening.
Key economic releases include the initial jobless claims, Challenger job cuts, ISM Manufacturing data, final S&P Global Manufacturing PMI, and construction spending figures. Additionally, Fed officials Kashkari, Barkin, Collings, Schmid, and Williams are scheduled to speak. The EUR/USD pair remains bearish, bouncing back from an early push toward 1.1380 and settling in the 1.1340-1.1330 range.
The final S&P Global Manufacturing PMI and Eurozone unemployment rate will be released, alongside the ECB's Lagarde, Cipollone, Machado, Montagner, and Schnabel speeches.
GBP/USD has regained some stability, briefly surpassing the 1.3300 level before slipping back to the 1.3260 zone. The final S&P Global Manufacturing PMI will be the sole release in the Channel. USD/JPY has been trading between the low 157.00s, extending the prevailing cautious sentiment. Upcoming domestic releases will encompass the BoJ Summary of Opinions, final S&P Global Manufacturing PMI, weekly Foreign Bond Investment figures, and Tankan data.
AUD/USD has faced increased downside pressure, dipping towards the 0.6950 region, marking new two-month lows. Next on the domestic calendar are the final S&P Global Manufacturing PMI, balance of trade results, and commodity prices.
Gold has retreated from its post-PCE uptick, currently hovering around the $4,150 region per troy ounce amid the USD's recovery and rising US Treasury yields. Born and raised in Argentina, Pablo has been actively involved in the FX markets and trading since his college years. AUD/USD is currently at two-month lows near 0.6950 in the Asian session on Wednesday, as lower-than-expected Australian underlying CPI data dampens hopes for further RBA interest rate hikes.
Chinese PMI data have also failed to boost the Australian Dollar, despite a pause in the USD advance. USD/JPY has slipped below 157.00 in the Asian session on Wednesday, with hawkish BoJ expectations and intervention risks supporting the yen, countering weak domestic factory and retail sales data. Meanwhile, the broader USD retreat also contributes to the pair's downside.
Gold has reversed course, slipping back towards the $4,150 level per troy ounce on Wednesday. The precious metal has retreated from its earlier break above the key $4,200 mark and slight decline, as the USD partially recovers from its daily losses in the face of mixed Treasury yields.
Bitcoin has traded sluggishly on Wednesday, with bulls striving to defend the immediate $83,000 level as immediate support. Ethereum has moved in tandem with Bitcoin, staying below key resistance levels of $2,700 on the upside and $2,600 on the downside. Ripple has been hovering near $1.50, while EUR/USD has plummeted to its lowest level since May 2025, but a fresh inflation shock in the Eurozone could potentially provide the Euro with an unexpected boost. The pair opened the session at 1.1312 and remains well below its January peak of 1.2082.
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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