Here is what you need to know on Monday, June 14:
Markets are relatively calm on Monday as traders already have Wednesday's Fed decision in mind. US infrastructure talks seem stuck. Tesla's Musk lifted boosted Bitcoin while Britain is set to push back the reopening. Oil extends its upward march and gold consolidates its losses.
The US dollar has been edging higher, extending gains recorded on Friday. The University of Michigan's Consumer Sentiment Index beat expectations in June while its inflation component dropped. That somewhat contrasts the stronger-than-estimated Consumer Price Index figures published earlier.
While the calendar is relatively light on Monday, tensions are mounting toward Wednesday's Federal Reserve decision. Analysts seem split between calling for the bank to provide the first hint of tapering its bond-buying scheme and no change in policy at this juncture.
The Fed holds the market – How long will it last?
President Joe Biden's efforts to approve infrastructure spending have reportedly run into objections from his own party. That dampens hope arising from a bipartisan proposal discussed last week. The president continues touring Europe and US 10-year Treasury yields are hovering below 1.50%.
UK Prime Minister Boris Johnson is expected to announce a four-week delay in plans to fully reopen the economy, moving "Freedom Day" from June 21 to July 19. The Delta variant of COVID-19 continues spreading rapidly. Disagreement between Britain and the EU was apparent at the G-7 meeting.
Leaders of the group confronted China on human rights in Xinjiang and the origins of COVID-19. Markets seem to shrug off this development.
Tesla's founder Elon Musk has been flexing his muscle around Bitcoin's price, this time pledging to invest in BTC if more mining comes from renewable sources. Bitcoin surged above $39,000, Etehreum changes hands at around $2,500 and Shiba received a boost.
WTI Crude Oil has been holding onto its gains and trades at around $71 in hopes of stronger demand. Gold continues trading in a tight inverse correlation with the dollar, changing hands at around $1,864.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays weak near 1.0700 ahead of key EU inflation, GDP data
EUR/USD is keeping the red near 1.0700, undermined by a broad US Dollar rebound and a mixed market mood early Tuesday. Germany's Retail Sales rebound fail to impress the Euro ahead of key Eurozone inflation and GDP data releases.
GBP/USD consolidates its gains above 1.2550, investors await Fed rate decision
GBP/USD consolidates its gains near 1.2560 after flirting with the key 200-day SMA and three-week highs in the 1.2550-1.2560 zone during the early Tuesday. Investors reduce their bets on BoE rate cuts, which support the Cable.
Gold struggle with $2,330 extends, as focus shifts to Fed decision
Gold price is looking to build on to the previous downside early Tuesday, as traders continue to take profits off the table in the lead-up to the US Federal Reserve (Fed) interest rate decision due on Wednesday.
BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing
Binance Coin price is dumping, with the one-day chart showing a defined downtrend. While the broader market continues to bleed, things could get worse for BNB price ahead of Binance executive Changpeng Zhao sentencing on Tuesday, April 30.
Data fuels China optimism
China's factory activity has expanded for a second consecutive month, marking the best streak in over a year and fueling optimism for the sustainability of the world's second-largest economy's recovery.