What you need to know on Tuesday, June 8:
The dollar advanced modestly at the start of the day, but ended it in bearish numbers against all of its major rivals. Movements were limited as the macroeconomic calendar was tight as investors focus on top tier events to be released later this week, including the release of US inflation figures.
US Treasury Secretary Janet Yellen said on Sunday that higher interest rates would be an “advantage”, although she was quick to clarify that she does not expect higher levels of spending to lead to excess inflation. His comments temporarily boosted the dollar and weighed down stocks, and only the Nasdaq was able to post modest gains.
EUR / USD is trading just below the 1.2200 level, while GBP / USD is moving a few pips below the 1.4200 level. Commodity-linked currencies added roughly 30 pips each against the dollar. The USD / JPY pair is approaching 109.00.
Gold flirts with $ 1,900 a troy ounce, benefiting from a weaker dollar overall. Crude oil prices ranged between gains and losses, ending the day marginally lower. The WTI closed at $ 69.20 a barrel.
Meanwhile, the pound found support in comments from the UK Prime Minister’s spokesman, who said that nothing in the current UK data would prevent easing the lockdown. Furthermore, the UK health secretary said: “the majority of people hospitalized with COVID appear to be those” who have not been fully vaccinated.
The focus is on US inflation and the ECB’s monetary policy decision to be released later this week.
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