Forex Today: US dollar regains poise after Powell’s blow, Bitcoin rebounds, PMIs in focus

Here is what you need to know on Wednesday, June 23:

The market mood remains somewhat buoyed, courtesy of the reassurance from Fed Chair Jerome Powell on inflation and monetary policy, which eased the rising fears over a sooner-than-expected rate lift-off. Most Asian stocks follow Wall Street higher, although the gains appear limited by rising coronavirus cases in Australia, New Zealand and Taiwan.

Additionally, uncertainty over the US infrastructure stimulus deal and resurfacing Sino-American tensions over the Taiwan strait keep investors slightly on the edge. The futures tied to the S&P 500 index rises towards 4,250 while the US Treasury yields remain subdued amid Powell’s dovish comments.

The American dollar attempts a rebound after the Powell-led decline, weighing on most majors. AUD//USD remains depressed below 0.7550 amid US-China tensions and dovish comments from RBA’s Deputy Governor Luci Ellis. Ellis noted that the board remains committed to "maintaining highly supporting monetary conditions." Meanwhile, USD/JPY flirts with two-month tops of 110.86.

EUR/USD is on the backfoot below 1.1950 ahead of the Eurozone and German Preliminary Manufacturing and Services PMIs. GBP/USD is consolidating below multi-month highs on the 1.3900 level amid renewed Brexit optimism, as the UK and EU officials sound positive about resolving the Northern Ireland (NI) protocol issue. 

Gold price is finding its feet after Tuesday’s drop, although $1790 remains a tough nut to crack for the bulls. US Markit PMIs awaited for fresh cues.

Bitcoin price bounces to $33K but analysts say ‘it’s too early’ to call a bottom


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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD pressured amid downbeat data, covid concerns

EUR/USD is trading well below 1.18 and down on the day. Markit's US Services PMI missed estimates with 59.8, souring sentiment. Worries about covid provide some support to the safe-haven dollar. The ECB's dovish decision pressures the euro.


GBP/USD hovers around 1.3750 amid after mixed UK data

GBP/USD is holding above 1.3750, clinging to this level after UK Retail Sales beat estimates but Markit's PMIs missed on both sides of the pond. Covid headlines are eyed.


XAU/USD eyes a sustained move below key $1799 support

Gold price is trading on the wrong footing this Friday, eyeing the first weekly loss in five weeks, as the US dollar remains at the highest levels in three months.

Gold News

Cardano might pull back to $1.11 before heading higher

Cardano price pierced the July 18 swing high at $1.21, indicating a resurgence of buyers. Although ADA might try to slice through $1.25, a retracement will likely evolve before tagging $1.37.

Read more

US Markit PMIs Preview: Pre-weekend dollar boost? Downbeat figures could exacerbate risk-off mood

Two steps down, one step up – that has been the playbook for risk-averse markets. What happens when traders have little time to act ahead of the weekend and the last word belongs to a downbeat figure? 

Read more