Forex Today: Central banks’ week starts with markets in panic

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, June 14:

Financial markets started the week in risk-off mode, a follow-through of Friday’s negative sentiment after the US reported inflation kept rising in May to reach a multi-decade high. Market participants are looking for a potential 75 bps rate hike as the US Federal Reserve meets this week.

The macroeconomic calendar remained empty, which exacerbated risk-related trading. Wall Street remained pressured while heading into the close, with the three major indexes settling at their lowest since last January. The

The EUR/USD pair trades near the 1.0400 level, while the GBP/USD pair bottomed at a 2-year low of 1.2106, holding near-by at the time being. Commodity-linked currencies also collapsed. AUD/USD trades around 0.6920, while USD/CAD soared to 1.2890. The USD/JPY pair closed the day with a third consecutive doji at around 134.30.

Gold edged lower, with XAU/USD now changing hands at around $1,823 a troy ounce. Crude oil prices continued to advance, with WTI now trading at $120.70 a barrel.

The yield on the US 10-year Treasury note finished the day at 3.37% after peaking at 3.44%, its highest since before the pandemic.

The US Federal Reserve will be the first but not the only central bank to announce its monetary policy decision. The Switzerland National Bank, the Bank of England and the Bank of Japan will also announce their decisions in the upcoming days.

If the US Federal Reserve steps up its bet, it won’t take long until the rest follow such a lead. In the meantime, financial markets will see the decision as mounting concerns about a possible recession, which will translate into more panic selling.

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.

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY recovers to 154.00 amid hawkish BoJ repricing

USD/JPY is recovering from six-month lows of 152.89, retesting 154.00 in European trading on Tuesday. However, the upside attempts appear limited as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to boost the Japanese Yen. Meanwhile, US Dollar selling remains unabated despite hawkish Fed expectations and rising geopolitical tensions, lending additional support to the pair.

Gold traders seem hesitant below $4,450 as Fed rate hike bets counter softer USD

Gold retreats to the lower end of its daily range heading into the European session, though it holds above the $4,400 mark amid a softer US Dollar. However, hawkish US Federal Reserve expectations, along with persistent geopolitical uncertainties, offer some support to the safe-haven buck and keep a lid on the non-yielding bullion.

Ripple and Stellar outlook: Hold bullish bias above EMAs as derivatives back upside

Ripple (XRP) and Stellar (XLM) hold above the key support zones on Tuesday, hinting at an upside move. Derivatives metrics further support the recovery, with both altcoins showing positive funding rates and rising long positions. Derivatives data shows a bullish tilt among XRP and XLM traders.

Europe in focus: September 2026

Six major net contributors demanded substantial cuts to the European Commission’s proposed 2028–2034 EU budget. Germany, Denmark, the Netherlands, Austria, Finland and Sweden issued a joint position on 27 August calling for the nearly €2 trillion proposal to be reduced by several hundred billion euros and rejecting additional common EU borrowing.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.