Currencies Latest Market News: Broad-Based USD Weakness at New York Close
Estimated reading time: 5 minutes
- Broad-based USD weakness at the New York close.
- Quiet market consolidation ahead of major economic events.
- Focus shifts to upcoming CPI release and FOMC meeting.
- AUD and NZD outperformed other G10 currencies.
- Market awaiting clear signals before significant trades.
Contents
- Currencies Latest Market News: Broad-Based USD Weakness at New York Close
- Quiet Consolidation Ahead of Major Macro Events
- What to Watch Next
Quiet Consolidation Ahead of Major Macro Events
At approximately 21:00 UTC on September 12, 2025, the US dollar experienced a modest, broad-based decline against major currencies during the New York close. This relatively quiet session, characterized by low volatility, followed a week of softer-than-expected US labor data and increased bets on future Federal Reserve rate cuts. The development suggests market consolidation ahead of several high-impact economic events scheduled for the following week, most notably the release of the US Consumer Price Index (CPI) on September 17 and the subsequent Federal Open Market Committee (FOMC) meeting. The movement was not dramatic, with most major pairs experiencing intraday fluctuations of less than 1%.
The Dollar Index (DXY) moved directionally lower, reflecting the overall USD weakness across major currency pairs. Teletrade’s market news confirms the trend although specific DXY figures were not available. Individual currency pairs showed the following movements at the New York close, as reported by Teletrade: EURUSD closed at 1.17341 (+0.29% on the day), GBPUSD at 1.35704 (+0.34%), USDJPY at 147.174 (-0.13%), USDCHF at 0.79574 (-0.36%), USDCAD at 1.38364 (-0.18%), AUDUSD at 0.66588 (+0.71%), and NZDUSD at 0.59726 (+0.59%). Teletrade FX Close levels and %-moves (September 12, 2025)
The Australian and New Zealand dollars slightly outperformed other G10 currencies, reflecting steady risk sentiment. The S&P 500 closed up 0.85%, further supporting the notion of a generally risk-on environment. Teletrade FX Close levels and %-moves (September 12, 2025) Weekly macro narrative context and rate expectations (DailyForex) This muted reaction suggests market participants are primarily focusing on upcoming macroeconomic releases rather than reacting significantly to current data.
No significant economic data releases or central bank announcements drove the USD’s movement in the 12 hours preceding the New York close. Forex TradingCharts economic calendar, confirming lack of major releases in last 12 hours The lack of major news flow contributed to the subdued trading conditions and relatively narrow trading ranges. The subdued nature of the USD weakness, with moves remaining within a relatively tight range, points to a period of consolidation and positioning ahead of next week’s key events. Weekly macro narrative context and rate expectations (DailyForex)
The focus has clearly shifted to next week’s anticipated volatility. The upcoming US CPI release, projected to provide insights into inflationary pressures, will likely play a significant role in shaping market expectations regarding future Federal Reserve actions. Furthermore, the September FOMC meeting will be closely scrutinized for any indications regarding the central bank’s future monetary policy path. Simultaneously, decisions from the European Central Bank (ECB) and the Bank of England (BoE) are also anticipated to influence currency markets. Weekly macro narrative context and rate expectations (DailyForex)
Yields on US Treasury bonds (UST 2y/10y), German Bunds, UK Gilts, and Japanese Government Bonds (JGBs) were not reported as primary drivers of the USD’s movement during this period. There were no reports of significant central bank interventions or major geopolitical events during this timeframe that could have impacted currency movements.
The market’s relatively calm behavior suggests a period of digestion and anticipation. The recent softening in US labor data and rising bets on future Fed rate cuts laid the groundwork for Friday’s USD weakness. However, the absence of dramatic price action underscores that participants are awaiting clear signals from next week’s pivotal economic and monetary policy announcements before committing to significant directional trades.
What to Watch Next
- US CPI release (September 17): This high-impact data point will provide critical insights into inflation trends and influence market expectations for the Federal Reserve’s next policy move.
- FOMC meeting (September 17-18): The FOMC meeting outcome and accompanying statements will likely trigger significant market volatility.
- ECB and BoE decisions: The decisions made by the ECB and the BoE will be closely scrutinized for impacts on the Euro and the British Pound, respectively.
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FAQ
What is the expected impact of the CPI release?
