Forex Today: Dollar eases, focus remains on US inflation

FXStreet Team FXStreet

What you need to know on Tuesday, June 8:

The dollar advanced modestly at the beginning of the day but ended it in the red against all of its major rivals. Movements were limited as the macroeconomic calendar was scarce while investors are focused on first-tier events to be out later this week, including the release of US inflation figures and the European Central Bank decision on monetary policy.

US Treasury Secretary Janet Yellen said on Sunday that higher interest rates would be a “plus,” although he quickly clarified that she does not expect higher spending levels would create an inflation overrun. Her comments temporarily boosted the greenback and weighed on equities, with only the Nasdaq able to post modest gains.

EUR/USD trades just below the 1.2200 threshold, while GBP/USD hovers a few pips below the 1.4200 level. Commodity-linked currencies added roughly 30 pips each against the dollar. The USD/JPY pair approaches the 109.00 figure.

Gold flirts with $1,900 a troy once, benefiting from the broad dollar’s weakness. Crude oil prices seesawed between gains and losses, ending the day marginally lower. WTI settled at $69.20 a barrel.

Meanwhile, the pound found support in comments from UK’s Prime Minister spokesman, who said that nothing in current UK data would prevent easing the lockdown. Also, the UK health secretary said: "the majority of people in hospital with COVID appear to be those" who haven't been fully vaccinated.

The focus stands on US inflation and the ECB’s monetary policy decision to be out later this week.

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