{"id":438304,"date":"2026-09-17T20:00:18","date_gmt":"2026-09-17T13:00:18","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/u-s-dollar-mixed-as-markets-digest-the-day-after-the-fed-hike-and-todays-boe-decision-438304\/"},"modified":"2026-09-17T20:00:18","modified_gmt":"2026-09-17T13:00:18","slug":"u-s-dollar-mixed-as-markets-digest-the-day-after-the-fed-hike-and-todays-boe-decision","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/u-s-dollar-mixed-as-markets-digest-the-day-after-the-fed-hike-and-todays-boe-decision-438304\/","title":{"rendered":"U.S. dollar mixed as markets digest the day after the Fed hike and today&#8217;s BOE decision"},"content":{"rendered":"<div>\n<p dir=\"auto\" class=\"PDq2pG_selectionAnchorContainer\">Good morning and welcome to the Morning Kickstart post and video for the North American session.<\/p>\n<p dir=\"auto\">The U.S. dollar is mixed. It is trading lower against the EUR, JPY, AUD and NZD, but higher against the GBP, CHF and CAD. The New Zealand dollar is the strongest of the major currencies, while the British pound is the weakest following the Bank of England\u2019s decision to leave interest rates unchanged.<\/p>\n<p dir=\"auto\">It is the day after the Federal Reserve raised rates by 25 basis points for the first time since July 2023. Stocks are rebounding, Treasury yields are moving lower and crude oil is retreating toward the key $100 level.<\/p>\n<p dir=\"auto\">In the morning video above, I take a look at the three major currency pairs\u2014EURUSD, USDJPY and GBPUSD\u2014from a technical perspective. For each pair, I outline the bias, the risk-defining levels and the targets that would give either the buyers or sellers more control.<\/p>\n<p dir=\"auto\">The U.S. dollar is mixed<\/p>\n<p dir=\"auto\">The dollar enters the North American session with no unified direction:<\/p>\n<ul>\n<li>\nWeaker versus the EUR, JPY, AUD and NZD\n<\/li>\n<li>\nStronger versus the GBP, CHF and CAD\n<\/li>\n<li>\nThe NZD is the strongest major currency\n<\/li>\n<li>\nThe GBP is the weakest major currency\n<\/li>\n<\/ul>\n<p dir=\"auto\">The mixed price action reflects a market balancing Wednesday\u2019s Fed rate hike against today\u2019s Bank of England decision, lower Treasury yields, falling oil prices and a strong rebound in U.S. stock futures.<\/p>\n<p dir=\"auto\">Fed raises rates for the first time since July 2023<\/p>\n<p dir=\"auto\">The Federal Reserve raised its target range by 25 basis points to 3.75%\u20134.00% on Wednesday. It was the Fed\u2019s first rate increase since July 2023.<\/p>\n<p dir=\"auto\">The decision was unanimous, but the updated projections indicated that policymakers may not be finished. The median projection for the federal funds rate at the end of 2026 moved up to 4.125%, implying the potential for another 25-basis-point increase before year-end.<\/p>\n<p dir=\"auto\">The message from the Fed was that inflation remains too high and policymakers are willing to tighten further if needed. The next move will depend on inflation, employment and the broader economic data.<\/p>\n<p dir=\"auto\">Bank of England leaves rates unchanged<\/p>\n<p dir=\"auto\">There were no major surprises from the Bank of England. The central bank left its Bank Rate unchanged at 3.75% by a 6\u20133 vote.<\/p>\n<ul>\n<li>\nSix members voted to leave rates unchanged.\n<\/li>\n<li>\nThree members preferred a 25-basis-point increase to 4.00%.\n<\/li>\n<\/ul>\n<p dir=\"auto\">Governor Andrew Bailey said policy \u201cmay have to tighten\u201d if the Middle East conflict \u201cpersists for an extended period, as appears likely,\u201d particularly if the risk of second-round inflation effects increases.<\/p>\n<p dir=\"auto\">That keeps the BOE on a potential pathway toward a November rate increase if energy prices remain elevated and begin feeding more broadly into wages, consumer prices and inflation expectations.<\/p>\n<p dir=\"auto\">Coming into the decision, markets were pricing approximately a 76% probability that the BOE would remain on hold. The pound moved lower following the announcement as some positioning for a more hawkish outcome was unwound.<\/p>\n<p dir=\"auto\">The BOE did not raise rates today, but it clearly left the door open for a future increase.<\/p>\n<p dir=\"auto\">U.S. stock futures rebound<\/p>\n<p dir=\"auto\">U.S. stock futures are sharply higher as equities recover some of Wednesday\u2019s post-Fed losses:<\/p>\n<ul>\n<li>\nDow industrial average futures: +473 points<\/li>\n<li>\nS&amp;P 500 futures: +70.19 points<\/li>\n<li>\nNasdaq 100 futures: sharply higher<\/li>\n<\/ul>\n<p dir=\"auto\">The combination of lower Treasury yields and falling oil prices is giving equities some breathing room despite the Fed signaling that additional tightening may be needed.<\/p>\n<p dir=\"auto\">The rebound is encouraging for the buyers, but it follows a sharp decline after Wednesday\u2019s decision. The next question is whether the early gains can be sustained after the opening bell or whether sellers use the rebound as an opportunity to reenter.<\/p>\n<p dir=\"auto\">Treasury yields retreat<\/p>\n<p dir=\"auto\">U.S. Treasury yields are lower across the curve:<\/p>\n<ul>\n<li>\n2-year yield: 4.7174%, down 1.0 basis point<\/li>\n<li>\n5-year yield: 4.8336%, down 2.1 basis points<\/li>\n<li>\n10-year yield: 4.9733%, down 3.1 basis points<\/li>\n<li>\n30-year yield: 5.3199%, down 2.8 basis points<\/li>\n<\/ul>\n<p dir=\"auto\">The 10-year yield has moved back below the psychologically important 5.00% level. The larger declines farther out the yield curve suggest some relief following the recent bond-market selloff.<\/p>\n<p dir=\"auto\">Lower yields are helping support stock futures and precious metals. Nevertheless, yields remain elevated, and the Fed has left the door open for another rate increase if inflation does not move convincingly lower.<\/p>\n<p dir=\"auto\">Crude oil retreats toward $100<\/p>\n<p dir=\"auto\">Crude oil is trading at $100.59, down $1.84 or 1.80%.<\/p>\n<p dir=\"auto\">The decline comes as concerns about an immediate Saudi supply disruption ease. Saudi Arabia is redirecting some shipments, while expectations that portions of the damaged East-West pipeline could return more quickly than initially feared are taking some of the geopolitical premium out of oil. <a class=\"decorated-link\" rel=\"noopener\" target=\"_new\" href=\"https:\/\/www.reuters.com\/business\/energy\/oil-prices-extend-losses-fears-middle-east-supply-disruptions-ease-2026-09-17\/?utm_source=chatgpt.com\">Reuters<\/a><\/p>\n<p dir=\"auto\">That does not mean the Middle East risk has disappeared. The Saudi pipeline, the Red Sea, Bab el-Mandeb and the Strait of Hormuz remain potential pressure points for global energy supplies.<\/p>\n<p dir=\"auto\">For traders, $100 remains an important short-term barometer. Staying above $100 would keep crude oil elevated and inflation concerns alive. A sustained break below would suggest that more of the geopolitical risk premium is coming out of the price.<\/p>\n<p dir=\"auto\">Gold, silver and copper move higher<\/p>\n<p dir=\"auto\">Precious and industrial metals are moving higher:<\/p>\n<ul>\n<li>\nGold: $4,325.68, up $61.15 or 1.43%<\/li>\n<li>\nSilver: $64.138, up $1.173 or 1.86%<\/li>\n<li>\nCopper: $6.6020, up $0.0930 or 1.43%<\/li>\n<\/ul>\n<p dir=\"auto\">Gold\u2019s rebound is notable because it comes one day after the Fed raised interest rates. Higher rates can be a headwind for gold because the metal does not pay interest. Today, however, declining Treasury yields and a mixed U.S. dollar are providing support.<\/p>\n<p dir=\"auto\">Silver is outperforming gold, while copper\u2019s gain adds to the more positive tone across risk assets.<\/p>\n<p dir=\"auto\">Bitcoin remains contained<\/p>\n<p dir=\"auto\">Bitcoin is little changed at $76,200, up $62 or 0.08%.<\/p>\n<p dir=\"auto\">Despite the strong rebound in stock futures and the decline in Treasury yields, Bitcoin has not shown the same upside momentum. That relative underperformance suggests cryptocurrency buyers remain cautious following the Fed\u2019s more hawkish policy signal.<\/p>\n<p dir=\"auto\">North American economic calendar<\/p>\n<p dir=\"auto\">The North American calendar is busy at 8:30 AM ET, led by U.S. housing data, weekly jobless claims and the Philadelphia Fed manufacturing survey.<\/p>\n<p dir=\"auto\">8:30 AM ET<\/p>\n<ul>\n<li>Building permits: 1.410 million expected versus 1.443 million prior\n<\/li>\n<li>Housing starts: 1.309 million expected versus 1.239 million prior\n<\/li>\n<li>Initial jobless claims: 208,000 expected versus 206,000 prior\n<\/li>\n<li>Continuing claims: 1.780 million expected versus 1.774 million prior\n<\/li>\n<li>Philadelphia Fed index: 30.5 expected versus 47.4 prior\n<\/li>\n<\/ul>\n<p dir=\"auto\">The housing numbers will show how elevated mortgage rates are affecting construction. Jobless claims will provide another reading on labor-market conditions, while the Philly Fed prices-paid component will be watched for signs of continuing inflation pressure.<\/p>\n<p dir=\"auto\">Canada will also release producer-price data. Industrial product prices previously rose 0.6% month over month, while raw-material prices fell 2.2%.<\/p>\n<p dir=\"auto\">\n<p dir=\"auto\">North American economic calendar<\/p>\n<p dir=\"auto\">The North American calendar is busiest at 8:30 AM ET, with U.S. housing, jobless claims and Philadelphia Fed data joined by Canadian producer prices.<\/p>\n<p dir=\"auto\">8:30 AM ET<\/p>\n<ul>\n<li>Building permits: 1.410M expected versus 1.443M prior\n<\/li>\n<li>Housing starts: 1.309M expected versus 1.239M prior\n<\/li>\n<li>Initial jobless claims: 208K expected versus 206K prior\n<\/li>\n<li>Continuing claims: 1.780M expected versus 1.774M prior\n<\/li>\n<li>Philadelphia Fed index: 30.5 expected versus 47.4 prior\n<\/li>\n<li>Canada producer prices: +0.6% month over month prior\n<\/li>\n<li>Canada raw-material prices: \u22122.2% month over month prior\n<\/li>\n<\/ul>\n<p dir=\"auto\">The housing figures will provide another indication of how elevated mortgage rates are affecting construction. Jobless claims remain important for assessing the strength of the labor market, while the Philadelphia Fed\u2019s prices-paid component will offer another look at manufacturing inflation.<\/p>\n<p dir=\"auto\">10:00 AM ET<\/p>\n<ul>\n<li>Pending home sales: \u22120.6% expected versus \u22122.3% prior\n<\/li>\n<\/ul>\n<p dir=\"auto\">Pending home sales track signed contracts and tend to lead completed existing-home sales by one or two months<\/p>\n<p>                            This article was written by Greg Michalowski at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Good morning and welcome to the Morning Kickstart post and video for the North American session. The U.S. dollar is mixed. It is trading lower against the EUR, JPY, AUD and NZD,&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-438304","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/438304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=438304"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/438304\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=438304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=438304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=438304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}