Forex Today: Uncertainty keeps majors ranging ahead of central bankers’ words
|What you need to take care of on Tuesday, June 28:
Major pairs seesawed between gains and losses but held on to familiar levels. The dollar is down against most of its rivals, but no technical breakout has taken place. The EUR/USD pair trades just below the 1.0600 level, while GBP/USD stands in the 1.2260 area.
Market players are juggling with mounting inflation and recession concerns, and central bankers juggling to tame inflation without halting economic progress. The mood was generally positive at the weekly opening but soured after S&P downwardly reviewed economic growth. It now expects the EU economy to advance a modest 2.6%, while foresees US growth at 1.6%, well below the estimated potential growth rate of around 2%.
Stock markets managed to hold on to positive territory in Europe and Asia, but Wall Street closed in the red. US government bond yields continue to seesaw up and down alongside market fears. The yield on the 10-year Treasury note peaked at 3.21%, now hovering nearby, up for the day.
The USD/CAD pair edged lower, now trading at around 1.2870, helped by higher crude oil prices, as WTI is now changing hands at $109.50 a barrel. AUD/USD, on the other hand, is under pressure, trading at around 0.6920.
Gold advanced at the beginning of the day, but finishes it in the red at around $1,824.00 a troy ounce.
The European Central Bank hosts this week the Forum on Central Banking in Portugal. President Christine Lagarde offered the welcoming remarks. On Tuesday, several ECB members will be on the wires as per their participation in the aforementioned forum, while leaders from around the world will speak on Wednesday.
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