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Forex Today: Investors look at US PCE and French elections

The Greenback regained further traction and climbed to multi-week highs on the back of the Fed’s policy divergence vs. some of its G10 peers and hawkish Fedspeak, while multi-decade lows in the Japanese yen also added to the Dollar’s gains.

Here is what you need to know on Thursday, June 27:

The USD Index (DXY) added to Tuesday’s advance and managed to reclaim the area beyond the 106.00 barrier along with further upside in US yields. On June 27, the final Q1 GDP Growth Rate will be at the centre of the debate, seconded by Durable Goods Orders, advanced Goods Trade Balance, pending Home Sales and weekly Initial Jobless Claims.

EUR/USD remained well on the defensive and dropped to new monthly lows near 1.0660 on the back of the Dollar’s march north. The EMU’s final Consumer Confidence gauge, Economic Sentiment and Industrial Sentiment are due on June 27.

GBP/USD flirted with its monthly lows near 1.2620 against the backdrop of further improvement in the Greenback and the broad-based offered stance in the risk-linked galaxy. The BoE’s Financial Stability Report (FSR) is due on June 27.

USD/JPY advanced to multi-decade peaks well north of the 160.00 hurdle amidst rising prudence on potential FX intervention by the BoJ. Retail Sales and weekly Foreign Bond Investment figures are expected on June 27.

AUD/USD printed humble gains on expectations that the RBA might keep its restrictive stance for longer, all in response to higher-than-expected inflation figures in Australia. Consumer Inflation Expectations are due on June 27 along with the speech by RBA’s Hauser.

Prices of the WTI remained stuck within their range near $81.00 following another unexpected build in US crude oil supplies and persistent demand concerns.

Gold prices revisited the area below the $2,300 mark per ounce troy, down for the second consecutive session on the back of the stronger Dollar and higher yields. Silver extended its bearish trend and clinched new six-week lows near $28.60.

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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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