<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-course-corrects-towards-the-end-of-the-week-20220909/“>Dollar course corrects towards the end of the week</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-slides-further-down-1-against-the-euro-and-sterling-20220909/“>Dollar slides further, down 1% against the euro and sterling</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/risk-trades-rejoice-on-dollar-correction-20220909/“>Risk trades rejoice on dollar correction</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-falls-further-on-the-day-amid-softer-dollar-kuroda-jawboning-20220909/“>USD/JPY falls further on the day amid softer dollar, Kuroda jawboning</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/heads-up-boe-postpones-september-policy-meeting-by-one-week-20220909/“>Heads up: BOE postpones September policy meeting by one week</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-villeroy-inflation-should-be-back-to-around-2-by-2024-20220909/“>ECB’s Villeroy: Inflation should be back to around 2% by 2024</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-villeroy-our-hands-are-completely-free-on-next-policy-move-20220909/“>ECB’s Villeroy: Our hands are „completely free“ on next policy move</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-kaimr-75-bps-rate-hike-was-inevitable-and-right-20220909/“>ECB’s Kažimír: 75 bps rate hike was inevitable and right</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-knot-curbing-the-dynamic-in-inflation-is-the-only-concern-20220909/“>ECB’s Knot: Curbing the dynamic in inflation is the only concern</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/china-august-m2-money-supply-122-vs-121-yy-expected-20220909/“>China August M2 money supply +12.2% vs +12.1% y/y expected</a></li></ul><p>Markets:</p><ul><li>AUD leads, USD lags on the day</li><li>European equities higher; S&P 500 futures up 0.8%</li><li>US 10-year yields down 2.2 bps to 3.269%</li><li>Gold up 1.1% to $1,726.50</li><li>WTI crude up 1.9% to $85.16</li><li>Bitcoin up 8.2% to $20,981</li></ul><p style=““ class=“text-align-justify“>The US dollar is seeing a significant correction towards the end of the week and that is the key story in markets today.</p><p style=““ class=“text-align-justify“>You can point to a more hawkish ECB, jawboning by Japanese officials, a better outlook on the UK economy amid support from the fiscal side, or even a rally in stocks as main reasons for the move. But I would say it is all of that put together alongside a confluence of technical levels holding in place against the dollar this week.</p><p style=““ class=“text-align-justify“>EUR/USD defended daily support at 0.9900 in the past few days before running up 1% earlier to 1.0112, settling up 0.5% at 1.0040-50 levels at the moment. Daily resistance at 1.0075-90 remains a key spot to watch.</p><p style=““ class=“text-align-justify“>GBP/USD held at the March 2020 lows near 1.1400 on the week and has rebounded to 1.1648 earlier before keeping up by 0.5% around 1.1555 at the moment.</p><p style=““ class=“text-align-justify“>Meanwhile, USD/JPY is continuing its retreat after coming within a whisker of touching 145.00 two days back and has fallen further to a low of 141.50 earlier before holding around 142.50-60 levels currently.</p><p style=““ class=“text-align-justify“>USD/CAD also saw a rejection at daily resistance at 1.3200 on the week before sliding back today to just below 1.3000 and is now barely hanging above the figure level. AUD/USD kept a defense of key trendline support on the weekly chart just near 0.6700 before seeing a strong rebound today to 0.6877 – keeping around 0.6830 now, up 1.1% on the day.</p><p style=““ class=“text-align-justify“>Elsewhere, equities are looking to finish the week with a flourish with European indices trying to eat into the weekly losses while US stocks are hoping to snap a run of three straight weeks of declines. The risk rally has also helped to see oil be up by nearly 2% to above $85 and Bitcoin rally back above $20,000 on the day.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>This comes amid the mourning period that is being observed, so the central bank has decided to postpone the meeting (originally scheduled for 15 September). The policy decision will now be announced at 1100 GMT on 22 September. Just a heads up, so make sure you tweak those calendars for next week.</p><p style=““ class=“text-align-justify“>So far, the pricing going into the decision is favouring slightly a 50 bps rate hike (~65%) with a 75 bps rate hike (~35%) now seen as being less likely.</p>

This article was written by Justin Low at forexlive.com.