Dollar and G10 FX: DXY, Euro, Sterling Daily — 2026-09-11

The US Dollar Index (DXY) stabilized near 99.20 as hot US Producer Price Index (PPI) data reinforced Federal Reserve rate-hike expectations, causing the British Pound to retreat against the greenback. Meanwhile, the Euro held firm above 1.1600 following a hawkish European Central Bank (ECB) rate decision, with markets now pivoting to upcoming US inflation data for further directional cues.

Hot PPI Lifts Dollar Bets; ECB Hike Supports Euro Strength

Top developments

Hot PPI Data Pressures Sterling and Boosts Fed Hike Odds

On September 10, US producer inflation data exceeded estimates, prompting investors to price in a more hawkish Federal Reserve stance. This shift caused the British Pound (GBP/USD) to lose traction, trading down 0.17% to 1.3525, as the yield advantage for the dollar widened against other G10 currencies. The data also lifted rate-hike odds early in the session, despite headline monthly growth coming in in line with consensus at 0.4%.

ECB Raises Rates Again; Euro Holds Above 1.1600

The European Central Bank increased its key interest rates again on September 10, citing persistent inflation pressures from energy costs and geopolitical conflicts. Despite the hawkish move, the EUR/USD pair remained stable around 1.1610–1.1640 in early Asian trading on Friday, September 11, as traders digested the decision and awaited US inflation prints. German media noted that while the Euro initially gained against the dollar ahead of the meeting, it gave up some ground post-decision as the market focused on US data risks.

DXY Stabilizes Below Key Resistance

The US Dollar Index (DXY) recovered from early losses to trade marginally higher near 98.95–99.20 during the European session on Tuesday, September 8, stabilizing below the 61.8% Fibonacci retracement level at 99.20. By mid-week, the index regained positive traction, climbing back above the mid-99.00s as traders bet on Fed tightening, though a key confluence hurdle remains at 99.75.

Local view

In Germany, financial outlet finanzen.net reported that the Euro initially rose against the US dollar on Wednesday (September 9) in anticipation of the ECB's policy stance, but softened slightly after the rate hike was confirmed, as investors shifted focus to US inflation data to gauge the next impulse before the Fed's meeting.

Japanese media, including Investing.com Japan, highlighted that the Pound Sterling rose earlier in the week due to intensifying expectations for a Bank of England rate hike, but noted that yen strength and broader dollar uncertainty weighed on G10 pairs. Fisco reported that USD/JPY remained firm, supported by rising US yields, with the pair testing a breakout from its 153-154 range.

Context & numbers

• GBP/USD: Traded at 1.3525 on September 10, down 0.17%.
• EUR/USD: Held near 1.1610–1.1640 ahead of and following the ECB decision.
• DXY: Stabilized near 99.20, with key resistance identified at 99.75.
• Policy Outlook: Markets are pricing a split path for September central bank decisions, with the Bank of Canada and Bank of England leaning toward no change, while the ECB, RBNZ, and BoJ are viewed as more likely to raise rates.

On the radar

• US CPI Data: The market is awaiting US Consumer Price Index (CPI) data later this week, which will be critical in confirming or rejecting the recent spike in Fed hike bets driven by PPI.
• Fed Meeting: Traders are positioning for the upcoming FOMC meeting, with attention focused on Chair Powell’s press conference for hints on future tightening.
• Oil Prices: Triple-digit oil prices have spooked markets, adding to inflation concerns and potentially supporting the dollar through safe-haven flows or energy-related currency impacts (CAD).