Today focus on some high impact news for USD. US PPI data, after yesterday's CPI data showed actual greater than forecast for core CPI, the Fed will probably cut interest rates by 25 basis points at this month's meeting.
The forex market is always risky, and volatile, GBPUSD previously declined yesterday and rallied strongly and almost approached the stop loss. Gold also ended the consolidation period and formed a new all time high.
Yesterday the Japanese and Chinese bank holidays did not have a big impact on the market, only the gold market seemed a bit sluggish, prices were consolidating at around $2580, while today the data we are waiting for is US retail sales.
Yesterday's US retail sales data was somewhat less supportive of the US dollar, today waiting for the release of CPI data in the European zone which may have an impact on the Euro.
The Fed cut interest rates by 0.50% from 5.50% to 5.00%, the market was volatile afterwards, this may be traders looking for other assets because cutting interest rates allows investors to choose assets with higher yields.
BOJ left interest rates unchanged as forecast at 0.25%. It looks like Japan's central bank is in no rush for an interest rate hike even though borrowing costs remain low.
