Here is what you need to know on Thursday, June 29:
The US Dollar (USD) stays resilient against its rivals early Thursday, with the US Dollar Index holding at two-week highs near 103.00 following Wednesday's upsurge. European Commission will publish the business and consumer sentiment data for June in the European session. Later in the day, inflation figures from Germany and the US Bureau of Labor Statistics' final revision to the first-quarter Gross Domestic Product (GDP) growth alongside the weekly Initial Jobless Claims data will be watched closely by market participants.
At a policy panel at the ECB Forum on Central Banking on Wednesday, FOMC Chairman Jerome Powell noted that they believe there is more tightening coming, driven by the strong labor market. While speaking at an event in Spain early Thursday, Powell repeated his hawkish message and reminded markets that a strong majority of policymakers expect two or more rate hikes by the end of the year. Meanwhile, the Federal Reserve's Bank Stress Test revealed that large US banks are well-positioned to weather a severe recession and continue to lend.
EUR/USD fell below 1.0900 during the Asian trading hours before staging a modest rebound. While speaking at the same panel with Powell, ECB President Chritsine Lagarde reiterated that another rate hike is very likely in July but refrained from confirming any other policy steps later in the year. In the meantime, annual Consumer Price Index in Spain rose 1.9% in June, down sharply from the 3.2% increase recorded in May.
GBP/USD lost more than 100 pips and came within a touching distance of 1.2600 on Wednesday. The pair is having a difficult time gaining direction early Thursday.
USD/JPY climbed to its highest level since November above 144.70 in the European morning on Thursday but lost more than 50 pips in a matter of minutes following that jump. As of writing, the pair was trading slightly below 144.50. In the Asian session on Friday, Tokyo Consumer Price Index, Industrial Production and Unemployment Rate data will be featured in the Japanese economic docket.
Hawkish central bank rhetoric continued to weigh on Gold price and XAU/USD fell toward $1,900, touching its lowest level since early March in the process.
Bitcoin lost 2% on Wednesday but managed to hold comfortably above $30,000. Ethereum came within a touching distance of $1,800 mid-week before recovering toward $1,850 on Thursday.
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 Weekly Forecast: Sellers gain confidence alongside the Fed Premium
The EUR/USD pair fell towards a fresh two-month low of 1.0900, finishing the second consecutive week in negative though little changed at around 1.0940.
Read full analysis
GBP/USD Weekly Forecast: Pound Sterling stays vulnerable ahead of UK inflation data Premium
The Pound Sterling (GBP) booked the second straight weekly loss against the US Dollar (USD), sending the GBP/USD pair to the lowest level in a month below 1.3050.
Gold Weekly Forecast: XAU/USD holds above key support area after bearish action to start week Premium
Gold (XAU/USD) declined sharply in the first half of the week but regained its traction after coming within a touching distance of $2,600.
Bitcoin Weekly Forecast: Will BTC decline further?
Bitcoin’s (BTC) price fell over 6% at some point this week until Thursday, extending losses for a second consecutive week, as it faced rejection from a key resistance barrier.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.