Forex Today: Majors waiting for a fresh catalyst

Valeria Bednarik FXStreet

What you need to know on Tuesday, June 29:

Major pairs remained confined to tight intraday ranges. The greenback managed to post a modest intraday advance, helped by a souring market’s mood.

European indexes closed in the red, while US stocks were mixed. The Nasdaq Composite kept rallying, ending the day with substantial gains and at record highs.

EUR/USD fell to 1.1902, its lowest in 5 days, but finished the day in the 1.1920 area. ECB’s Robert Holzmann said there’s no room to increase rates given weak inflation, adding that the PEPP will end when the coronavirus emergency is over, something that won’t happen anytime soon. The facilities program will be revised in September.

GBP/USD failed to recover the 1.3900 mark and trades around 1.3870. After Matt Hancock resigned over the weekend, Sajid Javid is the new UK’s health minister. Javid affirmed that coronavirus-related restrictions would be lifted on July 19, as the government sees “no reason to go beyond” that date. Meanwhile, the UK reported 22,868 new coronavirus cases, the largest one-day increase in five months, amid the spread of the Delta variant.

Commodity-linked currencies shed some ground against the dollar. Gold prices continued consolidating around $1,780, but crude oil prices edged lower. WTI settled at $72.90 a barrel.

US Treasury yields advanced during European trading hours, but retreated ahead of Wall Street’s opening, to end the day with modest losses.

The focus this week will be on US employment figures, and announcements related to the US government infrastructure investing program.

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

GBP/USD remains slightly bid near 1.3300

GBP/USD now advances marginally and manages to dispute the 1.3300 region on Tuesday. Indeed, Cable regains some balance on the back of the lacklustre performance of the Greenback, all preceding the Fed’s meeting on Wednesday and the BoE’s gathering on Thursday.

EUR/USD recedes from tops, back below 1.1400

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