Forex Today: Calm ahead of the ECB storm

Valeria Bednarik FXStreet

What you need to take care of on Thursday, June 9:

Trading was choppy across the FX board, with most major pairs holding on to familiar levels, except for the USD/JPY pair, which surged to a fresh 20-year high of 134.47. The imbalance between the US Federal Reserve and the Bank of Japan boosted the pair as the BOJ reaffirmed its decision to maintain the ultra-loose monetary policy.

The American dollar suffered early in the US session as government bond yields eased, later recovering some ground amid falling US equities. Wall Street accelerated its decline in the final hours of trading after White House spokeswoman Karine Jean-Pierre said they expect the inflation numbers to be released at the end of week to be elevated.

The EUR/USD pair trades around 1.0710, while GBP/USD stands at 1.2540. The best performer was the Canadian dollar, as crude oil prices soared. The USD/CAD pair trades at around 1.2550 as WTI surged beyond $122.00 a barrel. AUD/USD gave up and settled just below 0.7200.

Gold advanced for a second consecutive day, but gains were tepid. The bright metal is currently changing hands at $1,853 a troy ounce.

On Thursday, the focus will be on the European Central Bank. The ECB is set to announce the end of its stimulus program and keep key rates unchanged while hinting at a July lift-off, actually two steps behind most major central banks. European policymakers have been hinting at a 50 bps rate hike, but President Christine Lagarde inclines for a conservative 25 bps hike. Markets are choppy ahead of the event and ahead of fresh US inflation figures.

Bitcoin Price Prediction: BTC sets sight on $34,000

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD picks up extra pace north of 1.1400

EUR/USD extends its recovery past 1.1400 the figure as the NA session draws to a close on Monday. Indeed, the pair advances for the third straight day amid the persistent offered bias in the US Dollar. Meanwhile, market participants keep gearing up for the ECB Forum in Sintra and the release of critical US labour market data.

Gold struggles to attract investors

Gold remains under marked selling pressure, holding on just above the key $4,000 mark per troy ounce at the beginning of the week. The precious metal reverses two daily advances in a row as renewed effervescence in the Middle East revive inflation concerns and bolster Fed rate hike expectations.

Strategy unveils plan allowing Bitcoin sales to fund stock buybacks, dividends and reserves

Strategy (MSTR) has unveiled a Digital Credit Framework to strengthen the company’s financial standing. Under the new framework, the world’s largest corporate holder of Bitcoin (BTC) will pivot from its previous accumulation strategy, opting to sell BTC in order to boost liquidity, fund dividend payments, execute stock buybacks, and strengthen cash reserves.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.