Forex Today: US Dollar holds steady to start week, eyes on central bank speak

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

The US Dollar (USD) holds steady early Monday after having suffered large losses against its major rivals last week. Stock and bond markets in the US will be closed in observance of the Juneteenth holiday. The European economic docket will not be featuring any high-impact data releases and market participants will pay close attention to comments from central bank officials.

The US Dollar Index (DXY) fell more than 1% and closed the third straight week in negative territory before going into a consolidation phase above 102.00 in the European session. The benchmark 10-year US Treasury bond yield fluctuated wildly following the Federal Reserve's (Fed) monetary policy announcements but ended the week little changed below 3.8%. 

On Sunday, US Secretary of State Antony Blinken and Chinese Foreign Minister Qin Gang reportedly had "candid and constructive talks" on their differences from Taiwan to trade. Sides are said to have agreed on little beyond keeping the conversation going with an eventual meeting in Washington, reported Reuters.

EUR/USD gained nearly 200 pips last week, boosted by the broad-based USD weakness and the European Central Bank's (ECB) hawkish rhetoric. ECB Chief Economist Philip Lane and Governing Council member Isabelle Schnabel will be delivering speeches later in the day.  At the time of press, the pair was seen consolidating last week's gains slightly below 1.0950.

GBP/USD surged to its highest level since April 2022 at 1.2850 last week. The pair stays relatively quiet early Monday, moving up and down in a narrow range slightly above 1.2800. On Wednesday, the UK's Office for National Statistics will release inflation data for May ahead of the Bank of England's (BoE) monetary policy announcements on Thursday.

USD/JPY registered its highest weekly close since November as it failed to benefit from the USD's dismal performance. The resilience of the US T-bond yields and the Bank of Japan's (BoJ) dovish tone allowed the pair to gain traction in the second half of the week. USD/JPY was last seen moving sideways above 141.50.

Gold price closed the previous week virtually unchanged, slightly above $1,950. XAU/USD is having a difficult time finding direction early Monday.

AUD/USD edges lower but holds above 0.6850 in the European morning. The People's Bank of China (PBoC) is expected to announce a rate cut early Tuesday. 

USD/CAD fell below 1.3180 and touched its lowest level since September on Friday. The pair clings to small recovery gains at around 1.3200 on Monday.

Bitcoin fluctuated in a narrow channel over the weekend and extended its sideways action above $26,000 early Monday. Ethereum recovered from the three-month low it set at $1,620 mid-week last week and stabilized above $1,700.

Share: Feed news

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

Recommended content

Editors’ Picks

EUR/USD extends sideways grind near 1.0850 in quiet trading day

EUR/USD extends sideways grind near 1.0850 in quiet trading day

EUR/USD moves sideways at around 1.0850 in the second half of the day. The data from Germany showed that the IFO Business Climate Index edged lower to 89.3 in May but failed to trigger a market reaction. US markets will remain closed on Monday.


GBP/USD climbs to new two-month high above 1.2750

GBP/USD climbs to new two-month high above 1.2750

Following a quiet European session, GBP/USD edged higher and touched its strongest level since mid-March above 1.2750. Financial markets in the US are closed on Monday in observance of the Memorial Day holiday, possibly limiting the pair's volatility in the American session.


Gold recovers toward $2,360 following Friday's sharp drop

Gold recovers toward $2,360 following Friday's sharp drop

Following the sharp decline seen in the second half of the previous week, Gold stages a decisive rebound toward $2,360 on Monday. In the absence of high-tier data releases, escalating geopolitical tensions seem to be providing a boost to XAU/USD.

Gold News

Ripple holders wait for SEC lawsuit ruling amidst optimism of XRP ETF in 2025

Ripple holders wait for SEC lawsuit ruling amidst optimism of XRP ETF in 2025

Ripple holders are awaiting a ruling in the Securities and Exchange Commission’s (SEC) lawsuit against the payment remittance firm. A court ruling was awaited in May 2024, however there is no update, as of Monday, May 27. 

Read more

Three fundamentals for the week: Traders laser-focused on Fed's favorite inflation figure Premium

Three fundamentals for the week: Traders laser-focused on Fed's favorite inflation figure

US Consumer Confidence kicks off the week with worries of further deterioration. An update on past US GDP growth may also include a downgrade. Core PCE, the Fed's preferred gauge of inflation, is set to trigger high volatility. 

Read more