Forex Today: US inflation dominates headlines

Pablo Piovano FXStreet

The Greenback sharply reversed its recent positive streak on the back of the negative surprise of US CPI in May, while the hawkish hold by the Federal Reserve helped the USD Index (DXY) regain some composure.

Here is what you need to know on Thursday, June 13:

The USD Index (DXY) revisited the area of three-day lows on the back of declining US yields, lower CPI and after the Fed left rates unchanged, as expected. On June 13, the usual weekly Initial Jobless Claims are due seconded by Producer Prices and the speech by Fed’s Williams.

EUR/USD managed to stage quite a colourful comeback and advanced beyond 1.0800 the figure, although part of those gains fizzled out post-Powell’s press conference. Industrial Production readings in the euro bloc are expected on June 13.

GBP/USD rose to three-month highs well north of 1.2800 following the sharp sell-off in the US Dollar. There are no data releases scheduled for June 13 across the Channel.

USD/JPY reversed three consecutive daily declines, although it bounced off three-day lows near 155.70 as the Greenback trimmed some losses at the end of the day. The Quarterly BSI Large Manufacturing index and weekly Foreign Bond Investment figures will be published on June 13.

AUD/USD briefly retested the area just beyond the 0.6700 barrier against the backdrop of a strong pick-up in the selling bias in the US Dollar. The release of the Australian labour market report takes centre stage on June 13 seconded by Westpac’s Consumer Confidence print.

Prices of WTI advanced marginally as traders assessed the Fed’s interest rate decision and another negative weekly report of US crude oil inventories.

Gold prices ended Wednesday’s session marginally on the defensive after it could not sustain a post-Fed move above $2,340 region. Silver charted small gains but it came under pressure soon after hitting the $30.00 mark per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD remains offered; bears target 1.3600

GBP/USD now leaves behind part of its recent recovery and revisits the low 1.3600s at the beginning of the week. Indeed, Cable trades with a mild downward bias amid decent gains in the Greenback as investors remain wary of upcoming US data releases and the Jackson Hole event.

EUR/USD remains sidelined above 1.1650

EUR/USD trades on the defensive following the closing bell on Wall Street on Monday, hovering around the 1.1660 region and adding to Friday’s small decline. The pair’s pullback comes in response to an acceptable rebound in the US Dollar in a context of generalised caution ahead of key US data releases and Chair Warsh’s speech in Jackson Hole.

Gold poised to extend its bullish run

Gold surrenders part of its initial advance, although it keeps its bullish pace well and sound above the $4,600 mark per troy ounce on Monday. The precious metal’s move higher comes despite slight gains in the US Dollar and a modest pullback in US Treasury yields across the curve.

XRP surged 72%, but is the rally really about XRP?

Ripple (XRP) surged more than 72% in less than a week, its strongest rally since July 2025, as cryptocurrency prices broadly broke out. But the move has a problem: it may have little to do with XRP itself. The token's near-term rally appears to have been driven largely by a broader liquidity shift after the US Treasury expanded long-end bond buybacks, pulling yields lower and lifting risk assets.

Convulsion in credit markets

The United States government just posted a $432.3 billion deficit for July, the largest monthly shortfall since March of 2021. That single burst of red ink pushed the yeartodate deficit to $1.8 trillion, with two months still remaining in fiscal 2026. At this pace, Washington will soon wax nostalgic for the “good old days” when annual deficits were only $2 trillion.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.