Forex Today: US Dollar rebounds on hot PPI ahead of US CPI
Here is what you need to know on Friday, September 11:
The US Dollar Index (DXY) reclaimed the 99.00 barrier and then some, rebounding firmly as the hot Producer Price Index (PPI) rose 5.4% over the year to August, hardening expectations for a Fed rate hike at next week's meeting.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.20% | 0.27% | 0.52% | 0.21% | 0.85% | 0.74% | 0.34% | |
| EUR | -0.20% | 0.08% | 0.32% | 0.00% | 0.68% | 0.54% | 0.15% | |
| GBP | -0.27% | -0.08% | 0.27% | -0.07% | 0.58% | 0.49% | 0.08% | |
| JPY | -0.52% | -0.32% | -0.27% | -0.33% | 0.33% | 0.18% | -0.18% | |
| CAD | -0.21% | -0.01% | 0.07% | 0.33% | 0.65% | 0.52% | 0.12% | |
| AUD | -0.85% | -0.68% | -0.58% | -0.33% | -0.65% | -0.12% | -0.51% | |
| NZD | -0.74% | -0.54% | -0.49% | -0.18% | -0.52% | 0.12% | -0.35% | |
| CHF | -0.34% | -0.15% | -0.08% | 0.18% | -0.12% | 0.51% | 0.35% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Attention now shifts squarely to the August Consumer Price Index (CPI), with markets looking for the headline rate to hold around 3.4%, seconded by the preliminary Michigan Consumer Sentiment and inflation expectations gauges.
EUR/USD slipped and settled around the 1.1600 neighborhood, unable to hold higher ground even as the European Central Bank (ECB) delivered a widely expected 25-basis-point rate hike, lifting its deposit rate to 2.50%.
President Christine Lagarde called the move a "no-brainer," and markets added to bets on further tightening, but broad US Dollar strength kept the pair on the back foot. Speeches by Lagarde and ECB chief Philip Lane are due on Friday.
GBP/USD lost some shine and retreated toward the 1.3500 region on the back of the reinvigorated Greenback. Across the Channel, Friday brings a busy docket: monthly Gross Domestic Product, Industrial Production and Manufacturing Production, all for July, along with Consumer Inflation Expectations.
USD/JPY bounced off its seven-month lows and reclaimed the 154.00 zone, helped by the firmer Dollar even as hawkish Bank of Japan (BoJ) repricing continues to underpin the Yen. Japan has no first-tier releases due on Friday.
AUD/USD came under marked pressure and slid toward the mid-0.7100s, surrendering the bulk of the rally that had earlier carried it to four-month highs near 0.7240. Monday's report of a $54 billion Chinese stimulus package and Tuesday's hawkish Reserve Bank of Australia (RBA) commentary powered that advance, but neither could shield the Aussie from the Dollar's comeback. No major data releases are due in Australia.
West Texas Intermediate (WTI) rocketed higher, surging past the $100 mark to trade near the $102.50 zone as the intensifying US-Iran-Hormuz crisis kept supply fears front and center.
Gold came under heavy selling pressure, sliding back toward the $4,320 area per troy ounce as the rebounding Dollar and a spike in US Treasury yields, both spurred by the hot PPI, sapped demand for the non-yielding metal. Silver fared even worse, tumbling sharply on the day.