Forex Today: Dollar at a brink of turning bullish

Valeria Bednarik FXStreet

What you need to know on Monday, June 14:

The dollar advanced on Friday, to close the week with gains against all of its major rivals. However, no critical threshold was broken. Demand for the American currency was backed by solid US data, which points to an underway economic comeback, as the preliminary estimate of the Michigan Consumer Sentiment Index surged to 86.4 in June from 82.9 previously. Gains could also be attributed to position adjustments ahead of the US Federal Reserve monetary policy meeting next Wednesday.

Australia and China celebrate holidays on Monday, which means trading volumes will be reduced.

The EUR/USD settled just above the 1.2100 threshold and is at risk of falling further after the ECB offered an optimistic, but cautious stance.

GBP/USD hovers around 1.4100, and it’s also at risk of extending its decline, mainly after weekend news, pointing to increased Brexit and coronavirus-related jitters. British Prime Minister Boris Johnson expressed “serious concern” about the spread of the coronavirus Delta variant on Saturday, while the G7 summit saw European leaders pushing UK Johnson to fully implement the Brexit Withdrawal Agreement. Tensions persist around Britain´s desire to alter the protocol that imposed checks on British goods entering Northern Ireland.

AUD/USD trades around 0.7700, still holding within familiar levels although at the lower end of its weekly range. The USD/CAD jumped to the 1.2180 price zone, settling nearby.

Gold prices came under pressure with spot finishing the week at $1,877 a troy ounce. Crude oil prices retained gains, with WTI settling at $70.77 a barrel.

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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.

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