Forex Today: Markets’ attention crosses the Channel

Pablo Piovano FXStreet

The FX universe traded in a flattish mood on Tuesday, while investors remained mainly focused on the timing of Fed rate cuts. Next of note will be the release of UK inflation data ahead of the BoE gathering, while flash PMIs will close the week.

Here is what you need to know on Wednesday, June 19:

The USD Index (DXY) alternated gains with losses around 105.30 amidst declining yields across the curve. The NAHB Housing Market Index will be only due on June 19.

EUR/USD could not sustain an early uptick to 1.0760, receding to the 1.0730 region as the US session drew to a close. On June 19, EMU’s Current Account and Construction Output will be published.

GBP/USD traded in a vacillating fashion and ended barely changing just above the 1.2700 barrier. The release of the UK Inflation Rate takes centre stage on June 19.

USD/JPY kept the constructive view unchanged, although a close above 158.00 remained elusive. The Reuters Tankan Index, Balance of Trade results and the BoJ Minutes are all due on June 19.

AUD/USD regained composure and partially faded three consecutive sessions of losses. The Australian calendar is empty on June 19.

WTI prices added to the ongoing uptrend and advanced to seven-week highs near the $81.00 mark per barrel.

Gold prices maintained their consolidative range intact around the $2,330 region per troy ounce on the back of weak yields and the lack of direction in the Dollar. Silver charted humble gains, although it remained below the key $30.00 mark per ounce.

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 deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.