USD closes a second consecutive weekly gain as US yields and Fed expectations rise
đ” The USD remained dominant during the September 21â25 week, with DXY rising from around 100.2â100.4 to nearly 101.40, its highest level in roughly two months, before easing back toward 101 by the end of the week. The move was driven mainly by a broader repricing of a more hawkish Fed outlook rather than by a single event.
đ US flash PMI data for September stood out, with the Composite index rising to 58.4, Services reaching 58.7 and Manufacturing 57.0. Stronger growth alongside higher input costs pushed markets to price in a greater chance of another Fed rate hike in October, while also driving US Treasury yields higher.
đ Diverging economic conditions also supported the dollar. Eurozone PMI improved, helping the EUR hold up relatively better, while GBP came under pressure from softer UK data. AUD and CAD also weakened as broad USD strength outweighed support from RBA expectations and oil-price movements.
đŻđ” JPY was the main late-week exception. USD/JPY approached 159 before falling sharply as signals from Japan reinforced concerns over excessive yen weakness and kept intervention risk in focus. The yen rebound helped DXY cool on Friday but did not change the broader weekly trend.
đąïž Elevated oil prices and Middle East tensions continued to add to global inflation pressure, reinforcing the case for higher US yields. However, oilâs pullback late in the week also showed that USD gains could face temporary corrections as geopolitical expectations shift.
đ Attention now turns to the RBA decision on September 29 and US PCE inflation on September 30. If US inflation remains firm, yields and the dollar could stay supported; a softer-than-expected PCE reading would give heavily sold currencies more room for a technical rebound.
#ForexInsights
$BTC
đ” The USD remained dominant during the September 21â25 week, with DXY rising from around 100.2â100.4 to nearly 101.40, its highest level in roughly two months, before easing back toward 101 by the end of the week. The move was driven mainly by a broader repricing of a more hawkish Fed outlook rather than by a single event.
đ US flash PMI data for September stood out, with the Composite index rising to 58.4, Services reaching 58.7 and Manufacturing 57.0. Stronger growth alongside higher input costs pushed markets to price in a greater chance of another Fed rate hike in October, while also driving US Treasury yields higher.
đ Diverging economic conditions also supported the dollar. Eurozone PMI improved, helping the EUR hold up relatively better, while GBP came under pressure from softer UK data. AUD and CAD also weakened as broad USD strength outweighed support from RBA expectations and oil-price movements.
đŻđ” JPY was the main late-week exception. USD/JPY approached 159 before falling sharply as signals from Japan reinforced concerns over excessive yen weakness and kept intervention risk in focus. The yen rebound helped DXY cool on Friday but did not change the broader weekly trend.
đąïž Elevated oil prices and Middle East tensions continued to add to global inflation pressure, reinforcing the case for higher US yields. However, oilâs pullback late in the week also showed that USD gains could face temporary corrections as geopolitical expectations shift.
đ Attention now turns to the RBA decision on September 29 and US PCE inflation on September 30. If US inflation remains firm, yields and the dollar could stay supported; a softer-than-expected PCE reading would give heavily sold currencies more room for a technical rebound.
#ForexInsights
$BTC
