On Wednesday, September 10, the US Dollar (USD) displayed resilience, largely disregarding a significant downward revision to employment data. The market’s attention has now shifted to upcoming producer inflation figures for August, with a crucial 10-year note auction scheduled for the afternoon.
Despite an initial reaction to the US Bureau of Labor Statistics’ report indicating that 911,000 fewer jobs were added than previously reported as of March 2025, the USD managed to regain its footing. This rebound may reflect a typical market phenomenon known as “buy the rumor, sell the fact.” As of early Wednesday, the USD Index was holding steady above 97.50 amidst mixed trading in US stock index futures.
The recent week has seen the USD excel against several key currencies, notably outperforming the Canadian Dollar. A detailed currency’ heat map indicates varying percentage changes against major currencies, including the USD’s strength against the Japanese Yen.
In another area of the market, escalating tensions in the Middle East have driven Gold prices upwards, reaching a record-high exceeding $3,670 on Tuesday, before experiencing a slight correction. By early Wednesday, Gold was stabilizing around $3,650. This price movement coincided with Israel’s military action targeting senior Hamas leaders in Qatar, which was met with condemnation from Qatar, citing the strike as a violation of international law.
Market participants in Asia reacted to recent data from China, revealing a 0.4% decline in the Consumer Price Index (CPI) for August, which followed a flat reading in July. This news contributed to the Australian Dollar’s (AUD) upward momentum, allowing AUD/USD to trade above the 0.6600 mark.
The Euro also faced challenges; EUR/USD dropped over 0.4% on Tuesday, erasing many of the gains it had made on Monday. After dipping below the 1.1700 level, the pair found some support, trading slightly higher thereafter. Meanwhile, GBP/USD fluctuated after approaching the 1.3600 mark on Tuesday but settled down, maintaining levels slightly below 1.3550 early Wednesday.
Lastly, USD/JPY remained stable, trading sideways just below the 147.50 threshold following a nearly unchanged closing on Tuesday. As the market digests this confluence of data and geopolitical developments, traders remain cautious and observant of the implications for future economic indicators and inflationary pressures.
