Last Updated on 09/09/2026
Forex markets have traded in a relatively subdued manner since the start of the week, with the US Dollar (USD) hovering around 99.00 on Tuesday, as reflected by the US Dollar Index (DXY). Ongoing geopolitical tensions in the Middle East, rising energy prices, and higher US Treasury yields have placed inflation firmly in focus, with traders looking ahead to Thursday and Friday’s US Producer Price Index (PPI) and Consumer Price Index (CPI) releases.
What to Know on Wednesday, September 9
The DXY, which measures the US Dollar against a basket of six major currencies, stands near 98.82, little changed from Tuesday’s opening level. The index has formed a doji candlestick, suggesting market indecision. Wednesday’s economic calendar includes the ADP Employment Change 4-week Average, while traders are already positioning ahead of Thursday’s PPI data.
EUR/USD has moved above the 1.1600 level, supported by broad-based US Dollar weakness. With little major data on Wednesday’s calendar, attention is turning to remarks from European Central Bank (ECB) President Christine Lagarde. The main event will be Thursday’s ECB monetary policy meeting, with money markets currently pricing in a 100% probability of a 25-basis-point rate hike.
GBP/USD climbed to 1.3561 before easing back toward 1.3539 following comments from Bank of England (BoE) policymakers. Governor Andrew Bailey noted that the US-Iran conflict is contributing to higher energy prices, while Megan Greene expressed concern over the prolonged elevation in oil prices. Alan Taylor favors keeping monetary policy “moderately restrictive,” whereas Dave Ramsden described the domestic inflation outlook as relatively benign. The UK calendar remains quiet until Friday, when GDP figures are due.
USD/JPY extended its decline following suspected intervention from Japanese authorities, briefly falling below 153.00 before recovering. Although US Treasury Secretary Scott Bessent has urged Japan to pursue tighter monetary policy, the pair could move back toward its pre-intervention levels in the near term. US inflation data and the pair’s strong correlation with the US 10-year Treasury yield will remain key drivers. Traders will also monitor Japan’s Machine Tool Orders.
AUD/USD advanced toward its daily high after RBA Deputy Governor Hauser indicated that policymakers would discuss the possibility of another rate increase at the next meeting. With no major Australian data scheduled, attention could turn to China’s inflation figures, which may influence the Australian Dollar, ahead of Australia’s September Consumer Inflation Expectations release.
Oil prices, particularly West Texas Intermediate (WTI), climbed to a six-week high as escalating Middle East tensions raised concerns over supply disruptions. Recent Houthi attacks targeting Saudi Arabia have added to market uncertainty, while investment banks are increasingly concerned that the conflict could extend into 2027.
Gold prices edged lower, falling below $4,400 per troy ounce as traders awaited the upcoming US inflation reports. Although gold is traditionally viewed as a hedge against inflation, expectations for higher interest rates can push bond yields higher, creating additional pressure on non-yielding bullion. As a result, gold may continue to trade within a familiar range ahead of Friday’s inflation data.
Leave a Reply