<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-stays-in-control-so-far-on-the-day-20220907/“>Dollar stays in control so far on the day</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-barkin-says-has-bias-towards-hiking-rates-more-quickly-rather-than-more-slowly-20220907/“>Fed’s Barkin says has bias towards hiking rates more quickly, rather than more slowly</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/boes-bailey-inflation-target-is-very-important-for-the-uk-20220907/“>BOE’s Bailey: Inflation target is very important for the UK</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/boes-tenreyro-we-should-be-going-slowly-when-there-is-a-lot-of-uncertainty-20220907/“>BOE’s Tenreyro: We should be going slowly when there is a lot of uncertainty</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eu-says-will-propose-a-cap-on-russian-gas-20220907/“>EU says will propose a cap on Russian gas</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/disappointing-chinese-trade-data-adds-to-concerns-on-global-outlook-20220907/“>Disappointing Chinese trade data adds to concerns on global outlook</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-q2-final-gdp-08-vs-06-qq-second-estimate-20220907/“>Eurozone Q2 final GDP +0.8% vs +0.6% q/q second estimate</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-july-industrial-production-03-vs-05-mm-expected-20220907/“>Germany July industrial production -0.3% vs -0.5% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-august-halifax-house-prices-04-vs-01-mm-prior-20220907/“>UK August Halifax house prices +0.4% vs -0.1% m/m prior</a></li></ul><p>Markets:</p><ul><li>USD leads, JPY lags on the day</li><li>European equities lower; S&P 500 futures down 0.1%</li><li>US 10-year yields down 0.6 bps to 3.334%</li><li>Gold up 0.1% to$1,702.41</li><li>WTI crude up 0.2% to $87.09</li><li>Bitcoin down 1.3% to $18,730</li></ul><p style=““ class=“text-align-justify“>The dollar is continuing its rampaging run higher as markets are seeing little alternatives to the current state of play. Equities are sluggish amid global economic concerns while bond yields are holding higher with Europe set to pile on debt to deal with the impending energy crisis in the region.</p><p style=““ class=“text-align-justify“>USD/JPY is a whisker away from 145.00, up over 200 pips today in a rather straightforward march to the key pyschological level. The capitulation is fueling the dollar advance, alongside a softer Chinese yuan – which is on approach towards 7.00 on the dollar.</p><p style=““ class=“text-align-justify“>Elsewhere, the euro remains sluggish and is looking to breach below 0.9900 against the greenback while GBP/USD is lurching towards the March 2020 low of 1.1409 – down 0.8% to 1.1425 currently.</p><p style=““ class=“text-align-justify“>Commodity currencies are also struggling with USD/CAD testing 1.3200 again while AUD/USD is down to near key support close to 0.6700 on the day. The Bank of Canada will be in focus for the former later today, so watch out for that.</p><p style=““ class=“text-align-justify“>With there being little else to work with for traders on the week, the dollar looks set to try and scale to new heights in the coming days unless Fed speakers have something to say about that before the FOMC blackout period and US CPI data next week.</p>

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

<p style=““ class=“text-align-justify“>The pair is falling to the lows for the day now, down 0.8% to 1.1425 as sellers set their sights on the March 2020 low at 1.1409 next. A break below that will open up the next downside leg for the pair and the pound’s woes aren’t helped by a surging US dollar in trading this week and today.</p><p style=““ class=“text-align-justify“>BOE policymakers were out speaking in parliament earlier and they didn’t really do much to exude confidence that they may lean towards a more aggressive rate hike next week. Bailey pretty much just tried to brush it all off by saying „don’t take today’s comments as an indication for what we may do next week“. That’s a weak hand to be playing at a time like this.</p><p style=““ class=“text-align-justify“>And when you throw in remarks on an economy heading towards recession and caution from Tenreyro as seen <a target=“_blank“ href=“https://www.forexlive.com/centralbank/boes-tenreyro-we-should-be-going-slowly-when-there-is-a-lot-of-uncertainty-20220907/“ target=“_blank“>here</a>, it is hardly convincing. All else being equal, the path of least resistance for cable looks to be a continued push lower and the technicals may support that even more once the March 2020 low gives way.</p>

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

<ul><li>Prior -3.7%</li><li>Market index 258.1 vs 260.1 prior</li><li>Purchase index 197.8 vs 199.1 prior</li><li>Refinancing index 556.4 vs 562.5 prior</li><li>30-year mortgage rate 5.94% vs 5.80%</li></ul><p style=““ class=“text-align-justify“>Another week, another continued slump in mortgage activity as the average rate on the most popular mortgage tenor rises to its highest since mid-June, amid a spike in bond yields as well in the past week. The data here continues to point towards a worsening trend in the housing market so that it is still something to be wary about.</p>

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

<p style=““ class=“text-align-justify“>The call comes as USD/JPY trades at the highs for the day now, up over 170 pips or 1.2% to 144.50 levels on the day. The pair continues to look poised to hit 145.00 this week:</p>

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

<ul><li>Will propose mandatory target for reducing electricity use at peak hours</li><li style=““ class=“text-align-justify“>Will propose a cap on revenues of companies producing electricity with low costs</li><li style=““ class=“text-align-justify“>Will propose a solidarity contribution (of profits) for fossil fuel companies</li><li style=““ class=“text-align-justify“>Will propose a cap on Russian gas</li></ul><p style=““ class=“text-align-justify“>There are no additional details beyond this for now but von der Leyen highlighted some numbers in the statement which sees EU common storages of energy supply at 82% and that they have reduced Russian gas as a total of imports to only 9% (from 40% at the beginning of the Russia-Ukraine conflict).</p>

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