Forex Today: US inflation comes to the fore... again

The US Dollar came under some renewed selling bias and left behind the area of recent multi-week highs amidst lower yields and ahead of the publication of US inflation tracked by the PCE on Friday.

Here is what you need to know on Friday, June 28:

The USD Index (DXY) retreated from tops beyond the 106.00 hurdle amidst steady prudence ahead of the release of US PCE data. Indeed, the release of US inflation figures tracked by the PCE will take centre stage on June 28, seconded by Personal Income, Personal Spending, the Chicago PMI, and the final Michigan Consumer Sentiment print. In addition, the Fed’s Barkin and Bowman are due to speak.

EUR/USD regained some traction and partially recouped ground lost in the last couple of sessions, managing to reclaim the area above the 1.0700 barrier. On June 28, the German docket will be in the limelight with the publication of Retail Sales and the labour market report for the month of June.

GBP/USD reversed Wednesday’s strong pullback against the backdrop of some tepid improvement in the appetite for riskier assets. In the UK, the final Q1 GDP Growth Rate will be in the spotlight on June 28.

USD/JPY kept the trade around the area of multi-decade highs near 160.80 amidst rising cautiousness about the potential FX intervention by the BoJ. The Unemployment Rate, inflation figures in Tokyo, flash Industrial Production and Housing Starts are all due in Japan on June 28.

Another inconclusive session left AUD/USD hovering around the 0.6650 region, always immersed in the multi-week consolidative theme. Housing Credit figures are expected in the Australian calendar on June 28.

Reignited geopolitical concerns offset demand fears and lifted prices of WTI to new two-month highs just past the $82.00 mark per barrel.

Prices of Gold advanced markedly after two sessions in a row of losses, regaining the $2,330 zone per ounce troy ahead of the release of US PCE at the end of the week. Silver rose modestly, although it seems to have been enough to reverse four straight sessions in negative territory.