Here is what you need to know on Wednesday, June 21:
The risk-averse market environment helps the US dollar (USD) hold its ground mid-week as investors await FOMC Chairman Jerome Powell's testimony before the House Financial Services Committee. The economic calendar will not be offering any high-impact macroeconomic data releases and comments from central bank officials will be looked upon for fresh catalysts.
Reflecting the sour market mood, Shanghai Composite and Hang Seng indexes both lost more than 1% on Wednesday. Additionally, US stock index futures trade in negative territory following the dismal performance of major equity indexes on Tuesday. The US Dollar Index (DXY) clings to small daily gains above 102.50 after having closed the previous three trading days in the green.
Hot inflation data from the UK helped Pound Sterling find demand in the early European morning on Wednesday. Annual inflation, as measured by the change in the Consumer price Index (CPI), held steady at 8.7% in May, surpassing the market expectation of 8.4%. The Core CPI, which excludes volatile food and energy prices, rose 7.1% in the same period, compared to analysts' estimate of 6.8%. On an encouraging note, the Producer Price Index declined on a monthly basis. Following an initial spike above 1.2800, GBP/USD edged lower and stabilized above 1.2750.
EUR/USD continues to fluctuate in a very tight channel above 1.0900 for the second straight day on Wednesday. European Central Bank (ECB) policymakers Joachim Nagel, Isabelle Schnabel and Fabio Panetta will be speaking later in the day.
Following Tuesday's slide, USD/JPY gathered bullish momentum and was last seen trading above 142.00. “The Bank of Japan (BoJ) will patiently maintain an easy monetary policy to stably and sustainably achieve the 2% price target accompanied by wage growth,” the central bank Governor Kazuo Ueda repeated on Wednesday.
USD/CAD moves up and down in a narrow band above 1.3200. Statistics Canada will release Retail Sales data for April later in the session.
AUD/USD stays under bearish pressure and trades in negative territory below 0.6800 on Wednesday.
Gold price suffered large losses on Tuesday as investors reacted to the potential negative impact of a slowdown in China to the yellow metal's demand outlook. XAU/USD stays relatively quiet below $1,940 early Wednesday.
Bitcoin gathered bullish momentum and advanced to its strongest level since the first week of May above $28,800. Ethereum gained more than 3% on Tuesday and extended its rally to beyond $1,800 early Wednesday.
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 deflates to three-day lows around 1.1130
The euro remains under heavy pressure on Friday, with EUR/USD retreating toward the 1.1130 level to hit new three-day troughs. Despite a weaker reading in the U-Mich index in May, the US Dollar found support as inflation expectations ticked higher.
GBP/USD slips back to 1.3250 on USD-buying
GBP/USD recedes to the mid-1.3200s on Friday session, as the Greenback regains ground against the broadeer risk-linked universe. Supporting the upside in the US Dollar comes a rise in US consumer inflation expectations, according to the latest data from the U-Mich survey.
Gold looks depressed below $3,200
Gold reversed course on Friday, falling sharply below the $3,200 mark after Thursday’s strong rally. The retreat came as a resurgent US Dollar and easing geopolitical tensions weighed on demand for the safe-haven metal. Furthermore, XAU/USD remained under pressure and is on track to log its biggest weekly loss of the year.
Is Ethereum's comeback real?
Ethereum price hovers above $2,500 on Friday after soaring nearly 100% since early April's bottom. The ETH Pectra upgrade has boosted over 11,000 EIP-7702 authorizations in a week, indicating healthy uptake by wallets and dApps.
Trump’s Middle East dealmaking blitz: What does it mean for investors?
President Donald Trump’s May 2025 Middle East visit has unleashed a flurry of mega-deals, aimed at deepening U.S. trade ties, correcting trade imbalances, and reinforcing America’s leadership in defense and technology exports.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.