Forex Market Update London Session: US Dollar Leads Ahead of PMIs

Session brief Neutral bias Sep 23, 2026, 07:22 UTC

Claire DuboisEuropean Markets Analyst · ForexR analyst

The US Dollar gains strength across the board as the London session gets underway, putting pressure on EUR/USD and GBP/USD ahead of key European and UK flash PMI releases.

US Dollar Gains Ground Ahead of European Trading

The London session opens with broad gains for the US dollar, which is exerting downward pressure on major currency pairs and precious metals. USD/JPY is leading the advances with a gain of 0.26% on the day to trade at 157.735, while USD/CAD climbs 0.16% to 1.40829. On the other side of the ledger, AUD/USD is the leading laggard with a decline of 0.33% to 0.70887, followed closely by Gold (XAU/USD) which has fallen 0.7% to 4327.58, and EUR/USD, down 0.19% at 1.14241. Check our live currency strength meter to see how these dynamics shift in real-time as the European morning progresses.

Themes in current forex news today center on how central bank policies and potential de-escalation risks are shaping price action across global markets. As reported by FX Street and FXEmpire, media coverage focuses on how Federal Reserve policy expectations are keeping precious metals under pressure, while market analysts closely monitor key support zones for the British Pound and the Euro. In the debt market, the US 2-year Treasury yield finished at 4.71% on September 22, 2026, marking a decrease of 5 basis points from the prior day, while the 10-year yield closed at 4.96%. Because the daily trends differ across major currency pairs—with EUR/USD and GBP/USD in daily downtrends while USD/JPY and USD/CAD sit in mixed daily trends—our overall bias remains neutral.

Key Support and Resistance Zones for Major Currencies and Gold

For our EUR/USD analysis today, both the daily and H4 trends remain downward, with the 14-day RSI at 32.5. Over the last 5 days, the pair has declined 1.01%, moving with a 14-day average true range of 47.2 pips. A sustained break below S1 at 1.14237 would open the way toward the daily low at 1.14198. Conversely, a reversal back above the daily pivot at 1.14506 would invalidate the immediate bearish outlook and target R1 at 1.14726. Traders can map these key areas using our pivot point calculator to stay ahead of the intraday levels.

GBP/USD shows a similar technical alignment with both daily and H4 trends pointing down, supported by a daily RSI of 33. The pair has dropped 1.2% over the last 5 days, with a 14-day average true range of 59.7 pips. A move below S1 at 1.33125 could expose the day low at 1.33077. On the other hand, a push above the daily pivot at 1.33495 would negate this downward bias and target resistance at R1 at 1.33782.

When evaluating the gold price forecast, the precious metal displays a mixed daily trend and a downward H4 trend, with its daily RSI sitting at 49.7. Gold has gained 0.78% over the last 5 days, trading with a 14-day average true range of 98.04 dollars. The asset is currently trading below its daily pivot of 4341.89. A further decline below support at S1 at 4307.84 would signal deeper bearish momentum, while a recovery back above the pivot at 4341.89 would invalidate the downward pressure and open the path to R1 at 4392.31.

European and UK Flash PMIs Set to Drive London Volatility

Economic data scheduled for today will likely bring increased market action during the London session. At 07:30 UTC today, Germany releases the HCOB Manufacturing PMI, estimated at 54.5 against a previous 54.3, along with the Composite PMI (previously 51.8) and the Services PMI, which has an estimate of 50 compared to 49.7 previously. At 08:00 UTC today, we expect the Eurozone HCOB Manufacturing PMI, estimated at 52.7, the Services PMI, estimated at 51.7, and the Composite PMI, estimated at 51.5 compared to a previous 52.

This is followed at 08:30 UTC today by the UK S&P Global Services PMI, estimated at 52 against a previous 52.5, the Manufacturing PMI, estimated at 51.4 compared to a previous 51.7, and the Composite PMI, which had a previous reading of 52.5. Later in the day, US indicators will take focus. At 13:45 UTC today, the US S&P Global Services PMI is estimated at 56, the Composite PMI (previously 56), and the Manufacturing PMI, estimated at 53.5. Central bank speeches are also scheduled today, featuring the Fed's Barr at 14:05 UTC today and the ECB's Cipollone at 16:00 UTC today. Traders can prepare for these high-impact events using our economic calendar guide.