No key reports are due during the Asian session. Later in the day, the US will report Durable Goods Orders, and Canada will release inflation data. The ECB Forum will gather attention with many central bankers due to speak on Tuesday ahead of a panel on Wednesday that will include Powell, Bailey, and Lagarde. Geopolitics is also on the agenda.
Here is what you need to know on Tuesday, June 26:
Wall Street finished lower on Monday, with the Nasdaq falling 1.16%, and Treasury yields declined. The US Dollar Index dropped modestly, closing around 102.75, on a quiet day for currencies. Market participants await new data and speeches from central bankers from the European Central Bank (ECB) forum.
Monday's data showed that June's US Dallas Fed Manufacturing Index decreased from -29.1 to -23.2. On Tuesday, the US May Durable Goods Orders report is due, as well as housing data with the S&P/Case-Shiller and the FHFA Price Index and New Home Sales. This week's key number from the US will be on Friday with the Core Personal Consumption Expenditures.
EUR/USD moved sideways near 1.0900, away from Friday's low. The pair remains steady, showing no clear signs. The German Ifo survey declined more than expected. On Tuesday, the focus will be on ECB speakers at the Sintra conference. On Wednesday, Lagarde will be part of a policy panel with Bailey, Powell, and Ueda.
Analysts at Commerzbank:
The Ifo business climate has slumped for the second month in a row (88.5 after 91.5). The other leading indicators for the manufacturing sector are also pointing downwards. We feel confirmed in our forecast that the German economy will shrink again in the second half of the year. Many economists' still too optimistic economic forecasts are likely to be revised further downwards. This is also true for the ECB.
The Pound lagged on Monday, still affected by last week's developments. GBP/USD held above recent lows and finished slightly above 1.2700. Bank of England's Tenreyro will speak on Tuesday.
USD/JPY pulled back modestly from multi-month highs amid cautious markets and lowered US yields but held above 143.00.
The Canadian dollar continued to outperform. USD/CAD reached the lowest intraday level since mid-September at 1.3136 and bounced toward 1.3150, trimming losses. Crucial data will be released on Tuesday with the May Consumer Price Index, which is expected to slow down from an annual rate of 4.4% to 3.4%.
AUD/USD moved sideways around 0.6675 on Monday, consolidating last week's losses. The attention regarding data is set on Wednesday with Australia's Consumer Price Index for May ahead of next week's Reserve Bank of Australia (RBA) meeting.
NZD/USD rebounded from the 20-day Simple Moving Average (SMA) and climbed above 0.6150. New Zealand Prime Minister Hipkins is on a state visit to China.
The Turkish Lira continued to decline and hit fresh record lows, with USD/TRY reaching levels above 26.00.
Gold prices peaked at $1,937 and then pulled back toward $1,920. Silver rose 1.50% and approached $23.00. Cryptocurrencies fell modestly, with Bitcoin holding above $30,000.
Like this article? Help us with some feedback by answering this survey:
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
AUD/USD retargets the 0.6600 barrier and above
AUD/USD extended its positive streak for the sixth session in a row at the beginning of the week, managing to retest the transitory 100-day SMA near 0.6580 on the back of the solid performance of the commodity complex.
EUR/USD keeps the bullish bias above 1.0700
EUR/USD rapidly set aside Friday’s decline and regained strong upside traction in response to the marked retracement in the Greenback following the still-unconfirmed FX intervention by the Japanese MoF.
Gold advances for a third consecutive day
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Bitcoin price dips to $62K range despite growing international BTC validation via spot ETFs
Bitcoin (BTC) price closed down for four weeks in a row, based on the weekly chart, and could be on track for another red candle this week. The last time it did this was in the middle of the bear market when it fell by 42% within a span of nine weeks.
Japan intervention: Will it work?
Dear Japan Intervenes in the Yen for the first time since November 2022 Will it work? Have we seen a top in USDJPY? Let's go through the charts.