Forex Today: The Federal Reserve takes center stage
|What you need to know on Wednesday, June 16:
The greenback gained ground heading into the US opening but closed the day mixed across the board. The EUR and the CHF are unchanged against its American rival, as well as the JPY, while commodity-linked currencies and the pound are trading firmly lower.
US Retail Sales missed expectations while the PPI advanced by more than anticipated, hinting at further inflationary pressures. The focus is now on the US Federal Reserve, as the central bank will announce its decision on monetary policy on Wednesday while providing fresh Economic Projections.
Brexit jitters and the delayed UK’s reopening continued to affect the pound. According to the latest data, Irish imports from Great Britain fell by over 20% in April, deepening the post-Brexit trend. On Monday, Prime Minister Boris Johnson confirmed that current restrictions would continue until July 19, adding that he thinks there won’t be further delays but didn’t rule out such a negative scenario. GBP/USD fell to a fresh 2-month low
Wall Street closed in the red after European indexes posted modest intraday advances. US Treasury yields consolidate around Monday’s close, with the yield on the 10-year note stable around 1.50%.
Gold is under mild-pressure, trading around $1,857 a troy ounce, the 38.2% retracement of its latest bullish run. Crude oil prices resumed their advances with WTI settling above $72.00 a barrel.
These three cryptocurrencies look primed to test the May lows
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