MARKETS PREPARE FOR TURBULENCE ON THE ECB DECISION, US RETAIL SALES, AND PPI DATA TODAY IN FOREX.

WHAT YOU SHOULD BE AWARE OF ON THURSDAY, SEPTEMBER 14 IS AS FOLLOWS:

Asian stocks are rising as markets stay upbeat following the crucial US Consumer Price Index (CPI) data that confirmed Federal Reserve (Fed) pause predictions. The risk gauge, the US S&P 500 futures, is up almost 0.30% so far today. On Wednesday, the annual inflation rate for the United States increased 3.7% in August, exceeding the 3.6% increase forecast. The CPI increased 0.6% in August, which was its largest monthly jump since 2023, although it was in line with expectations. Compared to expectations of 0.2% and 4.3%, the core CPI climbed by 0.3% and 4.3%, respectively.

According to the CME Group's FedWatch Tool, money markets are still pricing in a Fed rate rise pause for next week while the likelihood of a rate hike in November is still hovering around 40%. The US Dollar and the yields on US Treasury bonds appear to be under pressure in European trading because to the unchanged dovish Fed predictions.

The Australian Dollar is the strongest currency in the G10 FX currency basket, followed by the Japanese Yen, and the Canadian Dollar is the weakest currency going into the European session.

At roughly 0.6435, the AUD/USD is maintaining its significant gains driven by Australian jobs statistics. As a result of part-time employment, the Australian economy created 64,900 jobs over the previous month, according to figures released on Thursday by the Australian Bureau of Statistics (ABS). As anticipated, the unemployment rate remained constant at 3.7%.

Despite a halt in the rise in oil prices, USD/CAD is in trouble below 1.3550. WTI is settling near $89.10 ten-month highs.

As the Japanese Yen gains strength from remarks made by Yoshitaka Shindo, Japan's newly appointed economy minister, USD/JPY is under pressure to reach 147.00. According to Shindo, he “will mobilize all possible policy measures to support the economy.” The major is also being burdened by declining US Treasury bond yields.

In the lead-up to the ECB showdown, EUR/USD is maintaining its recovery mode near 1.0750. Later in the day, major interest rates are anticipated to remain unchanged by the central bank. The key to signals on the ECB's future policy course and a clear direction for the Euro will be found in the latest economic predictions and President Christine Lagarde's address. According to sources cited by Reuters on Wednesday, inflation will be higher than 3.0% in 2024 according to the ECB's quarterly predictions.

Now Quoted Euro

The table below displays the percentage change in today's major currencies for the Euro (EUR). When compared to the US Dollar, the euro was strongest.

The heat map displays percentage changes between the major currencies. The quotation currency is chosen from the top row, while the base currency is chosen from the left column. If you choose the Euro from the left column and go to the Japanese Yen along the horizontal line, for instance, the percentage change shown in the box will be EUR (base)/JPY (quote).

The UK economy's problems and a generally weaker US Dollar are causing GBP/USD to struggle against 1.2500. A 'rub-off' effect from the ECB decision on the EUR/GBP cross might affect Cable.

Sellers are waiting for a sustained break of the $1,900 level in order to trigger further drops as the gold price languishes near three-week lows near $1,905.