Forex Today: Dollar’s demand resurfaces ahead of key US data, BOE set for a hawkish tilt?

Dhwani Mehta FXStreet

Here is what you need to know on Thursday, June 24:

The US dollar clings to the recent recovery gains amid cautious optimism. Investors remain jittery amid mixed signals from the Fed policymakers, awaiting a fresh batch of US economic data for fresh cues on the Fed’s monetary policy path.

Read: US Durable Goods Orders May Preview: Is the consumer really absent?

Asian stocks trade mostly lower, tracking the listless performance on Wall Street overnight. The futures tied to the S&P 500 index gain 0.20% amid US stimulus hopes while the US Treasury yields also hold at higher levels.

A bipartisan group of US senators said that it had reached a deal on a "framework" for an infrastructure spending bill and are likely to discuss it with President Joe Biden. However, US House of Representatives Leader Nancy Pelosi and Senate Majority Leader Charles Schumer is not endorsing the Bipartisan bill outrightly until they see the details, according to the US media reports.

The G10 fx space remains in subdued trading ranges, with AUD//USD keeping its range below 0.7600 while USD/JPY is trading below 111.00, correcting from 15-month tops.

EUR/USD is on the defensive below 1.1950 despite the upbeat Eurozone PMI reports. GBP/USD is easing towards 1.3950, as the pound remains undermined by the Brexit deadlock over the Northern Ireland (NI) protocol issue and a 41% jump in the Delta Plus covid cases in the UK.

Investors also turn cautious ahead of the BOE monetary policy meeting. The BOE is expected to maintain its monetary policy setting, although could hint at a potential tightening, given that the policymakers have been hawkish as of late.

Gold price is under pressure below $1780 amid a broadly firmer US dollar, having faced rejection at $1794 on multiple occasions.

Bitcoin is back in the red but in a narrow trading range, challenging the $32K support area once again.

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Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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