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Forex Today: Fed speakers and key data come to the fore

The Greenback gave away part of its recent advance despite the rebound in US yields in response to an improvement in the broad risk appetite trends and somewhat easing political jitters in Europe.

Here is what you need to know on Tuesday, June 18:

The USD Index (DXY) left behind two strong daily advances in a row amidst investors’ speculation of two interest rate cuts by the Fed in 2024. A busy calendar on June 18 will see Retail Sales, Industrial Production, Business Inventories and TIC Flows. In addition, Fed’s Cook, Barkin, Collins, Kugler, Logan, Musalem and Goolsbee are all due to speak.

EUR/USD showed some signs of life after Friday’s multi-week lows well south of the 1.0700 support. The final Inflation Rate in the euro zone, and the Economic Sentiment in both Germany and the Euroland are expected on June 18.

GBP/USD regained composure, set aside two straight sessions of losses and reclaimed the area beyond 1.2700 the figure. Next on tap in the UK calendar will be the release of the Inflation Rate on June 19.

USD/JPY maintained the bullish trade well in place and flirted with the 158.00 barrier once again in quite an auspicious start to the week. The Japanese docket will be empty on June 18.

AUD/USD alternated gains and losses around the 0.6600 neighbourhood ahead of the key interest rate decision by the RBA. On June 18, the RBA will decide on interest rates.

Prices of WTI added to Friday’s advance and challenged the key 200-day SMA above the $79.00 mark per barrel.

The rebound in US yields and some incipient risk-on trade weighed on Gold prices and sparked modest losses on Monday. By the same token, Silver partially faded Friday’s advance and revisited the low-$29.00s.

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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