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Forex Market Snapshot
The dollar has backed off a touch to start the week with US bond yields doing the same.
This has the dollar still firm but consolidating with the JPY, followed by the EUR ands CHF outperforming while the AUD is the only currency trading (slightly) weaker.
Note this .is not a typical month end with UK markets closed for a holiday.
Market Update: USDCAD vs AUDUSD
What it would take to test/break parity (1.000), which is clearly an obstacle?
Simple algebra:
AUDCAD = USDCAD x AUDUSD
1. USDCAD break, then accelerates above 1.3910 while AUDUSD lags, stays below .7200 (e.g. 1.3950 x .71685)
2. AUDUSD break, accelerates above .7200 while USDCAD lags (e.g. 1.0000 = .7225 x 1.3841)
3. A little of both (e.g. 1.0000 = ..72 x 1.3889
Daily charts: (Right click on any image (or chart) to open a full screen in a new tab)
USDJPY DAILY: Where is resistance?
Bessent says disorderly yen moves can destabilize global markets (Reuters)While USDJPY 160 is the obvious focus, the BoJ intervention ambush, supported by Treasury Secretary Bessent, has left little in the way of resistance other than 160.64 = =61.8% OF 163.98 => 155.23
in this case, the threat of intervention is likely more of a deterrent than the actual event, which should it occur would find likely buyers at lower levels (unless 155.23 is broken).
In the meantime, 160 is pivotal (Friday high 160.20) with support starting at the former 159.78 high
Reuters: Warsh signals Fed may need to raise rates
Warsh told the audience the U.S. central bank will “have work to do” if … blablabla
“Here is my standard: We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That’s our job,”
“The Fed’s predominant focus right now should be on prices.” Market investors , it would appear, don’t like idea of dearer cost of borrowed money:
Newsquawk Week Ahead in Focus 31st-4th September 2026
(including a review of Fed Chair Warsh’s speech that rocked markets)
Week in Focus 31st-4th September 2026: Highlights include RBNZ, BoC, US NFP, ISM Manufacturing/Services, EZ CPI Prelim
US MARKET WRAP: Hawkish Fed Chair Warsh speech sends yields and dollar higher
SNAPSHOT: Equities down, Treasuries down, Crude down, Dollar up, Gold down
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