Forex Today: Dollar ticks amid Delta variant fears, Cathie Wood boosts Bitcoin, US data eyed

Yohay Elam FXStreet

Here is what you need to know on Tuesday, June 29:

The market mood remains upbeat and calm as fears of inflation make way to some hope that the Delta variant has a limited impact on vaccinated countries. US consumer confidence and housing figures are eyed. Cryptocurrencies get a boost from Cathie Wood.

The dollar has been extending its gains alongside a minor increase in US Treasury yields. Concerns about higher US inflation after the Federal Reserve's preferred measure of price rises only met expectations. Core PCE hit 3.4% YoY in May.

The Delta COVID-19 variant continues spreading quickly in the UK, Australia, and also other places, but investors find solace in the relatively limited increase in hospitalizations and deaths. Moreover, a new study has shown that mixing the Pfizer and AstraZeneca vaccines is proving efficient.

EUR/USD is hovering around 1.19 ahead of a speech by Christine Lagarde, President of the European Central Ban, and her hawkish colleague Jens Weidmann of the Bundesbank. Germany and Spain publish preliminary inflation figures for June later in the day.

GBP/USD is trading below 1.39 as the new Health Secretary Sajid Javid seems confident that England will remove restrictions on July 19 as planned. The UK reported over 22,000 covid cases on Monday, the highest since January, yet hospitals remain calm.

Fed member Thomas Barkin speaks later in the day and may provide more insights on close the bank is to tapering bond buys. The S&P/Case Shiller Compositive House Price Index and the Conference Board's Consumer Confidence figures for June are eyed.

Conference Board Consumer Confidence June Preview: Pragmatism above all

Cryptocurrencies: Renowned investor Cathie Wood announced the launch of a Bitcoin Exchange Traded Fund (ETF), giving a boost to all digital assets. BTC/USD is hovering around $35,000.

Gold is trading below $1,780 and WTI Crude Oil at around $72 in a steady trade. Markets await Friday's Nonfarm Payrolls.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD gains traction to near 1.1800 as tariff uncertainty weighs on US Dollar

The EUR/USD pair holds positive ground around 1.1795 during the early Asian session on Tuesday. The US Dollar weakens against the Euro amid US tariff uncertainty. The release of the US January Producer Price Index report will be in the spotlight later on Friday.

GBP/USD treads water near 1.3500 as BoE-Fed divergence debate stalls

GBP/USD spent Monday spinning in place as market participants await a fresh catalyst to break the pair out of its recent range. The BoE's February hold came with a surprisingly dovish 5-4 split, and UK Consumer Price Index data last week showed inflation easing to 3.0%, reinforcing the case for earlier rate cuts, with most economists now looking to April or March for the next move.

Gold down but not out as key $5,140 support holds

Gold consolidates the advance to monthly top of $5,250 in Tuesday’s Asian trades. The US Dollar finds demand as liquidity returns and risk sentiment recovers, despite US tariffs uncertainty. Gold defends 61.8% Fibo resistance at $5,142 amid the pullback, daily RSI remains bullish.

Top Crypto Losers: BCH, HYPE, PUMP extend losses as Bitcoin drops below $64,000

Altcoins, including Bitcoin Cash, Hyperliquid, and Pump.fun, are leading losses over the last 24 hours as Bitcoin falls below $64,000 on Tuesday. The technical outlook for BCH, HYPE, and PUMP flags downside risk amid broader market selling.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.