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

Pablo Piovano FXStreet

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

FXStreet

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

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.