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.

Shiba Inu price at risk of falling 50% as SHIB faces multiple obstacles ahead

Author

FXStreet Team

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.